For the first time for more than 10 session gold price succeed to pass the level of $1400 USD/Ounce of gold. In which gold price at May 30, 2013 10:49 NY Time recorded a rise by 1.52% to reach the level of $ 1413.80 USD/Ounce of gold. Gold price starts to record a rise from the beginning of the early Asian trading session, but the rise in the Asian session was by 0.60%, but it is highest point was at 1391 USD/Ounce.
US Labor market support gold price
The US department said that, the number of unemployed people in USA increased by 10,000 while it was expected to decline by 4000. For sure this negative data affected the U.S. Dollar, which is, in turn, affected gold price. But how?
After the negative data from USA, the investor’s trust in the U.S. Dollar decreased so we watched a decline in the U.S. Dollar. For sure, after the decline in the US Dollar, it is normally to see a rise in gold price, but labor data had a lot of indicators.
By the decline of the labor data we are waiting for a decline in the U.S stock market, which mean that we are waiting for another rise in gold price.
From my own personal point of view, if there is not any improvement in the U.S data soon we are going to watch a rise in gold price to the level of $1500 USD/Ounce of gold in a small period of time.
The other indicator for the labor market, is the Fed bank is not going to end the quantitive easing program soon due to the weakness of the U.S market. For this reason, I expect a rise in gold price and its return as a safe heaven for investors, because the expected shake in the U.S dollar and the U.S stock market. Which is the only issue which push the investors to reinvest in gold.