Last week was a challenging one for most commodities as several of them experienced price dips but not gold. Its bullish run which began on Friday was maintained with its price closing at $1,833.70 which is considerably high. The week’s outlook for gold was also a positive one as its price performed above expectations. Gold prices rose as high as $1,836.90 after a slight fall earlier in the week. Its bullish run was however maintained despite the severe effects of NFP results on the commodity market. This performance comes as a huge surprise to both investors and analysts as most expected a fall in price.
Gold’s market performance on Friday saw its price rising to a high level in two and half months with a 1% increase. Even with the disappointing outcome of the NFP results, gold prices still maintained their upward surge and closed sizably high. This is an impressive outlook for this commodity as it was expected that the NFP results would influence market prices across all sectors. The US labor data fell short of the predicted 733,000 jobs to 235,000 employment for August which was way below predictions. For other commodities, the results dealt a severe blow to their prices, changing almost entirely the outlook of the market.
The current surge of the Euro also helped strengthen the rise of good prices as it pushed strongly against the US dollar. Even with the possibility of inflation and a massive decline of service income expected in the Eurozone, the currency is presently high compared to the US dollar and other rival currencies. This has resulted in the US dollar coming under pressure thus pushing gold prices further above the resistance level of $1,818.
While gold prices surge upward, the US dollar continues to weaken daily. The recent data from the labor market has contributed significantly to its weakness. The drastic decline in jobs is however blamed on the continuous struggle with rising cases of the spread of the Delta variant in the country. The failure of the NFP results to meet expectations has led to several uncertainties concerning the expected tapering. Investors are however optimistic that a rise in price for the US dollar might be experienced very soon.
Gold Prices And Positive Outlook
Presently, the commodity’s prices continue to hover around $1,833 and $1,823 levels, not minding the current market events. It is expected to go even higher as gold is in its bull season and so a steady increase should be expected. The current weakness of the US dollar is offering support for gold prices to maintain their bullish run. Investors from different parts of the world are beginning to capitalize on these rising prices for their ultimate gain.
The future however looks good for gold in the commodity market as it is gradually becoming a fairly stable commodity in terms of price influences and market changes.