Non-farms lift gold

Gold has jumped $17 after today’s US non-farm payrolls report missed estimates.

Gold was trading within a tight range earlier, but has surged since the number of new jobs announced failed to meet market expectations. Economists were predicting an increase of 180,000 on the payroll for September, when in fact there were only 148,000 more. This suggests to traders that the US economy is not growing at the rate policymakers would like.

It also means that it is unlikely that the US Federal Reserve’s current stimulus package of $85 billion per month will be altered until the first quarter of 2014. Traders have therefore been spurred to buy gold because a prolonged stimulus package will keep the US dollar under pressure, making the precious metal cheaper.

Investors are keeping in mind that October’s jobs data, now due in only a few weeks, may also be low, impacted by the partial US shutdown.  

Spot gold chart

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.