Continuous drawdown on US Dollar caused a storm in the market. President Joe Biden’s policy is causing more volatility than expected. For the gold, it is on its way to peak level as maximum as 1920. But we have to watch following events carefully –
- ISM manufacturing PMI (Tuesday)
- ISM non-manufacturing PMI (Thursday)
- Factory orders (Friday)
Last time (April) US added 266K jobs which wasn’t as much as expected. Currently we are projecting 700K new jobs with unemployment ratio 5.9% dropping. Central banks are buying gold for some time now and if they keep it continue which is more likely, then we should see a clear bullish market.
Another key reason why gold will keep higher high is the inflation. There are signs central bank demands are improving which brings investors to buy more gold than since.
Along inflation crypto attraction is another key reason why gold is having demand. People are trying to get away from impact of the inflation and it leads them to buy more crypto, gold, and silver with other reliable commodities.
Well, if economic events does effect negatively then we could see downtrend and gold could fall nearly $30 more or less.