According to Reuters, spot gold prices for bullion held above $1,700 after it was announced that U.S. private sector jobs increased in August. The report reveals August saw the largest amount of jobs gained since March of this year. This also indicates that the Federal Reserve may decide not to embark on a third round of quantitative easing.
What this means to gold collectors and traders is that while price of gold is currently looking solid, it may fall in price before it goes up to even further heights.
Much of the current gold rally was based on the probability of quantitative easing. If it holds true that the Federal Reserve won’t take such actions, now may be an excellent time to sell gold bullion, gold bars, and gold jewelry.
Many commodities experts strongly believe that the price of gold will hit new heights in the future; however, with today’s news they aren’t exactly sure when the next price spike may be. The main indicators to look for in the coming days include the following:
- Increased value of the Euro and decreased value of the U.S. dollar
- The Federal Reserve taking on a third round of quantitative easing
- Low interest rates continued
Reuters also reports that platinum has also grown in value to $1,580. The factors mentioned above will also contribute to the overall value of platinum and silver.
In the face of today’s news, experts wouldn’t be surprised if there is a dip in the price of gold and other precious metals over the next few days. Thus, those looking for a short-term money making opportunity may benefit from selling gold now and buying gold on its next rally.
Investors will also be watching closely as Obama makes his speech at the Democratic national convention tonight. It is rumored that he will be laying out his economic vision for the country. Journalists around the country are considering tonight’s speech the most high-stakes delivery of career.