Learning Investment09 - Gold
prices surged at the close of trade on Friday (Saturday morning Jakarta time)
after the employment data the United States (US) lower than expected. The poor
employment data signaled that growth in the US economy is still recovering.
This reduces expectations of market participants will be planned increase in US
interest rates.
To
quote the Wall Street Journal, Saturday (10/03/2015), in early trading, the
price of gold was down nearly 1 percent. But then reversed course after the
release of employment data.
Gold
for December delivery, the most actively traded contract jumped 2.1 percent to
US $ 1,136.60 an ounce on the Comex Division of the New York Mercantile
Exchange.
The
US Commerce Department said that US nonfarm payrolls rose 142,000 in September,
far below the consensus expected by analysts and economists surveyed by the
Wall Street Journal. Results consensus indicates that the data in the figure of
200,000 nonfarm payrolls.
As
for the unemployment rate consistent with the consensus, which was at 5.1
percent.
If
the original data from the US Department of Commerce in accordance with the
consensus then it is likely the US central bank to raise interest rates more
open. The impact, investors will choose to invest in the stock market or the
bond market because it has attractive yields when compared with gold.
The
stock market gives more profit, ie the dividend distribution beyond the price
increase. As for the bond market provides more benefits in the form of yield.
But
with bad data, market participants think again and choose to put their
investment in precious metals is a save haven instrument.
Read also Yield US Bond Equivalent to Dividend Stocks, What does it mean?
"It
strayed too wide," explains Senior Broker at RJ O'Brien, Chicago, Bob
Haberkorn. With these data could possibly make the price of gold continued to
fly until the end of the year.
He
continued, with these data, it's unlikely the US central bank to raise interest
rates this year. "It is difficult for the Fed to do so," he added.
Gold
prices this year are under considerable pressure due to the expected rise in
the federal funds rate. Such monetary policy has made the US dollar
strengthened to suppress the gold price.
Commodities
precious metals avoided by market participants due to investors who transact
with currencies outside the US dollar, profits will be lower due to the
strengthening US dollar.
