Gold price ended the trading week on Friday, by a decline equal to 2.06% to reach the level of $1384.60 USD/ Ounce of gold. The decline of gold price came due to the rise of the U.S Dollar, which was due to the strength of the U.S Labor market. The U.S labor market came by un expected improvement in the Labor market. For sure this data support the U.S Dollar which recorded a rise by 0.12 for sure it affect Gold price and caused a huge decline. The labor data also affected the U.S Stoke market positively, But how?
The U.S stoke market reduced its lose after the positive data came from USA, in which NASDAQ recorded an improvement by 45.16, while NYSE recorded an improvement by 94.90. investor called this move by ” the temporary correction “. On Friday we watched a rush on the U.S stock market, and a lack of demand on gold, which lead to a decline of gold price in New York stock market affected the global gold price.
It is expected to watch a rise in gold price by the beginning of trading tomorrow, But why? The expected move of burgin hunter, which will enter the market, especially from Asia, will cause the rise of gold price.
Gold price is in the bottom of the trading expected for this month, so it is a good time for the burgin hunter to get inside the market. but Gold price is not going to pass the same trading level, which is from $1380 to 1420 USD/ Ounce of gold, it is the same narrow deliberative range of gold.
Gold price could get out of this trend, in the case of any decline in the U.S data. It is the only case that, we are going to watch a rush to gold as the safe heaven once again, for sure we will monitor in that case, the passing of gold over the average of $1420 USD/ Ounce of gold, then we will going to watch the average of $1450 USD/ Ounce of gold, after this gold price will target the average of $1500 USD/ Ounce of gold.
What about trading? the only tip for investors to take a short position according to the flow of the market, because after any huge decline, it is dangerous to take a high risk in trading gold.