Data that Influence Gold Price Unstable Move
- 2023-07-31
- Posted by: Widyadhana Mufida
- Categories: Commodities, News
The price of gold moved unstable last week. This movement was influenced by the announcement by the US central bank The Federal Reserve (The Fed). This instability is expected to continue this week (31/07/2023).
Reported by cnbcindonesia.com, last week’s gold price was in the position of USD 1,959.20 per troy ounce. The price rose sharply 0.73%, but overall gold weakened 1.75% last week. This makes gold weakened in the last two weeks.
Tuesday this week (01/08/2023), there will be an announcement of JOLTs Job Opening data. The data will measure how many job vacancies are open in the final period of June 2023.
Then on Friday this week (04/08/2023), the US will also announce unemployment data for July. These two data are big considerations for The Fed in determining monetary policy going forward.
If the US workforce is still hot then it will be difficult for the Fed to soften. As a result, the price of gold will be depressed. On the other hand, if the US workforce declines, it could provide room for the Fed to soften and gold prices to rise.
“I expect the Fed will not be too worried if US economic data strengthens. As long as inflation continues to weaken. I expect the Fed to have ended the increase and this could make gold again sought after,” said Marex analyst Edward Meir, quoted by Reuters.
Influential Manufactur Data
In addition, data on manufacturing activity from China and the US are also influential. China’s manufacturing activity is in the spotlight as it continues to weaken. If China’s PMI improves, there is an opportunity for gold prices to rise.
US manufacturing activity is expected to decline. If the US Manufacturing PMI increases rapidly, then the US economy can still move quickly so that it will be difficult for inflation to come down.