Home » Investing » Gold Prices In Pakistan » Weekly Review : Gold prices in USA and Gold prices in Pakistan

Weekly Review : Gold prices in USA and Gold prices in Pakistan

Gold market is passing through a critical time nowadays.Gold prices in USA has started the week at $ 1207 /ounce and ended the week at $ 1178/ounce.This is 2.40 % decrease in the gold prices as compared to the last week.Gold prices in Pakistan has started the week at Rs 50600 /tola and ended the week at Rs 50150/ounce.This is 0.88 % decrease in the gold prices as compared to the last week. Following are the most important factors who affected the gold prices in USA in last week.

Strong US economy and Gold prices in USA

Federal reserve is keeping  a good eye on the unemployment and other US economic indicators. US economy has showed a very good improvement in last few months.It has showed a very good improvement in the job creation in the month of October 2016.The  current wage rate in the country is highest in the last seven years.The unemployment rate also has showed a considerable decline in the last month.It is now below the psychological level of 5 %.The US retail sales rose by 0.8 % in October 2016.This was more than expected rate of 0.6 %.All these solid figures are putting pressure on the gold prices in USA.

US Interest rates and  Gold prices in USA

The rate of inflation was 2 % last month and it was very close to the target set by the Federal reserve. The price index of the Federal reserve rose by 1.2 % in last 12 months.It was biggest increase in last 2 years.

The financial experts believe that there is a  93.5% chance that federal reserve will increase its interest rates in the month of December. It is expected that it will increase its interest rates in a range of 0.5 % to 0.75 %.These expectations are creating doubts in the minds of gold investors and it is decreasing the gold demand in the market.This decreasing demand is putting extra pressure on the gold prices in USA and gold prices in Pakistan.

Future Outlook

Market analysts are expecting a depressing time ahead for the gold market.They are expecting that gold prices in USA will hover between  $1,180 and $1,150 in next week.The upcoming US economic data will set the pace for the gold market in the upcoming week.US bureau of economic analysis  will release the GDP data for the third quarter on November 29,2016.The corporate profits data will also be released on the same day by the US bureau of economic analysis .It has been strongly advised to sell the gold in upcoming days. The short term and long term prospects of the gold market are very bad.

 

 

Facebooktwittergoogle_plusredditpinterestlinkedinmailby feather

About Emaad Qureshi