Recently, the jobs report was released for the United States, proving to be a big one that sparked fear among investors. However, investor fear isn't the only thing that the report caused. Gold is soaring as a result of it. Today, we'll talk about what we saw from the report, what it has to do with the price of gold, what we can expect to see from gold moving forward, and how binary options traders can take advantage of the trends. So, let's get right to it…
US Jobs Growth Slows To A Crawl
Recently, the jobs report for the United States was released. Unfortunately, the data contained in the report was nowhere near as positive as expected. In the month of April, 160,000 jobs were added to the United States economy. While this may seem like a decent number, it missed all projections and came tens of thousands lower than a key economic signal.
During the month, economists were expecting that the United States would add between 197,00 and more than 240,000 jobs to its economy. So, the fact that the data came in with only 160,000 job additions is a heavy hit alone. However, it's also important to remember that when economies are thriving, we see more jobs created. In the United States, positive economic conditions are signaled when job growth is over 200,000 per month. However, the growth we saw in the month of April came in well shy of that number as well, signaling weakness in the economy as a whole.
US Jobs And The Price Of Gold
At first glance, it may seem as though the US jobs report and gold are two completely separate topics. However, the truth is that the two have a strong correlation. You see, the US jobs report shows the state of the United States economy, and the USD is reflective of the United States economy. Because gold is priced using the USD, when changes happen in the currency, we see movement in the price of gold. In this particular case, poor economic data sent the value of the United States dollar downward. As a result, gold become less expensive in nations outside of the United States. This led to increases in demand and an increase in price.
What We Can Expect To See Moving Forward
Moving forward, I have an overwhelmingly bullish opinion when it comes to where the value of gold is headed. The reality is that the recent economic report out of the United States is only the tip of the ice burg. For more than a year now, economies around the world have been struggling in a big way. Not to mention, the market is a very uncertain place to be at the moment. When market and economic conditions are uncertain, we tend to see gains in the price of gold. I'm not expecting for this case to be any different.
How Binary Options Traders Can Take Advantage Of The Trends
When it comes down to it, gold is creating an amazing opportunity for binary options traders at the moment. The simple fact is that all signals are pointing toward growth in the value of the commodity. As a result, binary options traders should be watching closely for strong call option opportunities. This will allow you to follow the trends up to the top!
What Do You think?
Where do you think gold is headed and why? Let us know your opinion in the comments below.
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