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Gold is going up after the disappointing data on U.S. employment and reports of unexpectedly high inflation in China.
On Friday it was announced that the U.S. unemployment rate unexpectedly fell in March to 8.2% from 8.3% in February, but the number of jobs in non-farm sectors of the economy grew by only 120,000. The data were taken with a negative market, despite the decline in unemployment - expected to increase in the number of jobs will be 205,000. At the same time the February figure was revised upward to 240,000 from 227,000.
Inflation in China reached 3.6% in March year on year, while economists had forecast consumer prices by 3.3%. This fact has also increased investor interest in gold as a reliable asset, since, according to many analysts, the data on the growth of consumer prices in China are proof that the government will continue to stimulate economic growth in China.
Demand for gold from investors in China has grown dramatically in the past year because of high inflation: according to World Gold Council, the physical demand increased by 20 percent compared with 7 percent growth in the global market as a whole.
Analysts suggest that, despite the weak data on employment, on the whole state of the U.S. economy is improving due to the ongoing crisis in the eurozone, which will soon lead to the strengthening of the dollar and thus reduce the price of gold. Last week the dollar to a basket of currencies increased by 1.3 percent.
Jewellers in India - the world's largest gold market - on Saturday completed a three-week strike, as the finance minister promised that the government has to rethink the introduction of the excise tax on non-brands jewelry. Demand for the physical market in China has risen in the last week due to lower world prices.
May futures on the COMEX for gold today rose to $ 1648.6 an ounce.
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