If you want an example of the type of economic data that can have an impact on gold prices, the way that these values responded to the jobs report on September 5 could provide some free trading education.
Spot gold surged to as much as $1,399.06 per ounce, according to Reuters. By 14:01 GMT, this contract had fallen 0.5 percent to $1,385.52 an ounce. December gold rose to a similar level, increasing to as much as $1,399 an ounce on the Comex division of the New York Mercantile Exchange, The Wall Street Journal reported. The contract had most recently pared these gains, and had declined to $1,397.80 per ounce.
One major piece of economic news that was cited as having an impact on the price of the contracts for this precious metal was the ADP National Employment Report released by human resources firm Automatic Data Processing, according to the news source. Data contained in this document revealed that during August, 176,000 new positions were created.
The ADP report stated that small businesses were the largest driver of this employment growth, creating 71,000 positions during the month. Medium-sized firms were responsible for adding 74,000 jobs to their payrolls, and another 32,000 positions were created by large businesses.
The central bank has pushed its balance sheet to higher than $3 trillion during this period, and as a result of such bold action, many market participants have been drawn to the metal as a means of hedging inflation risk.
However, the fortune of this metal has since reversed. It reached an all-time high of more than $1,900 per ounce, but then it fell into a bear market in April 2013, having dropped 20 percent from this record level. The metal has recovered and since entered a bull market, but it is still trading at a 15 percent loss for this year, Reuters reported.
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