The US Economy. Good News For Gold?

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The market price of gold has been on the up. One key factor being a lack of strong numbers form the US Economy, such as unemployment.

Looking at COMEX futures, the price of gold for December delivery was up, along with cyclical consumer products, suggesting weak expectations.

Gold prices have tended to increase each time the US economy takes a hit. The precious metal still be seen in the light of returns offered by risk-free treasury bond. The speed that the Federal Reserve raises overnight rates (expected to be slow) will likely therefore impact prices. Another factor coming up is the rising Asian demand, particularly in India where weddings and festivals work in the yellow metal’s favour. One area of concern is inventory stockpiles from previous years.

 

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