Gold Price Forecast for October 02
Gold prices started rising on Wednesday, reaching as high as 1,215.90 per troy ounce, despite the fact that data showed that US non-farm private employment rose more than expected in September.
This is because data released Wednesday also showed that manufacturing activity in the US expanded at the slowest rate for three months in September. This cast some doubts over the health of the economy and will raise concerns about the future path of monetary policy.
Now investors are awaiting Friday’s nonfarm payrolls report for September. A good report will reinforce the argument for an early interest rate hike, strengthen the dollar and most likely lower the price of gold; however, the opposite is also true. A good report is generally considered to be more likely so a short term Put trade is probably the way to go.