The gold price is on the rebound today as investors await tomorrows all important jobs data out of the US and depending on the numbers, gold could go either way.
The market is currently pricing in a 70 percent chance that the US Federal Reserve will lift interest rates before the end of the year.
If tomorrows Non farm payrolls figure and unemployment rate hit the market above expectations the chances of a rate hike will probably rise to over 90 percent and that should see the gold price tumble again.
On the other hand, if the figures disappoint investors, gold is likely to benefit as the chances of a rate rise fall.
On the chart, we can see that gold has traded in a tight range over the last 3 trading sessions, making a run for the $1,280 mark before pulling back towards the lows of the session.
Even if the data from America tomorrow falls short of expectations, gold may find it difficult to break above this range.
Risk warning: Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, your level of experience and preparation of taking risk. The possibility exists that you could sustain a loss of some or of all of your initial investments and therefore you should not risk more than you are prepared to lose. Please seek independent financial advice if necessary.
|By clicking "Continue" you will be redirected to the website operated by FIBO Group, LTD company registered in BVI and regulated by FSC. Please familiarize yourself with the Customer Agreement through the link. Click "Cancel" to remain on this page.|