U.S. Employment has Increased Significantly, Exceeding Market Expectations / Investors Turned to Risky Assets, Causing Gold Prices to Fall

In Daily Market Review
March 16, 2021

U.S. employment has increased significantly, exceeding market expectations

The US manufacturing index in New York continued to rise to 17.4 in March, the highest since November 2018, and also higher than market expectations of 14.5, an increase of 5.3 index points from the previous month. Among them, new orders fell from 10.8 to 9.1, shipments soared from 4 to 21.1, and input prices rose from 57.8 to 64.4, the fastest growth rate in 10 years. Looking ahead, companies remain optimistic about the improvement of the situation in the next six months, and the number of employees is expected to increase significantly.

Investors turned to risky assets, causing gold prices to fall

Gold prices fell on Tuesday, and investors turned to higher-risk assets because they expected a rapid economic recovery. At the same time, they were waiting for the outcome of the Federal Reserve Board (Federal Reserve/FED) meeting. During the Asian session, gold prices were basically flat at US$1,732.32 per ounce. US gold futures GCv1 fell 0.05% to US$1,728.20 per ounce. With the acceleration of US vaccination and the benefit of the US$1.9 trillion relief plan to American families, Fed officials this week may predict that the US economic growth rate in 2021 will be the fastest in decades, while the unemployment rate will fall and the inflation rate will rise. It is expected that the price of gold will remain at the level of 1,760 within this week.

——————————————-

Z. com Bullion is an affiliate of GMO Financial Holdings, Inc., a Japanese listed group. The risk of loss in leveraged foreign exchange trading and margin trading can be substantial. Visit the company website to read full risk warning. https://bullion.z.com/en/about/legal/risk/
場外式黃金/白銀交易的風險:
Service relating to Over-the-counter (OTC) Gold Bullion/Silver trading is provided by MOL. OTC Gold/Silver Bullion trading carries a high degree of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. OTC Gold/Silver Bullion is not regulated by the Securities and Futures Commission (""SFC"") and therefore trading OTC Gold/Silver Bullion will not be subject to rules or regulations promulgated by the SFC. Before deciding to trade OTC Gold/Silver Bullion you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain losses in excess of your deposited fund or even more in extreme circumstances and therefore, you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading OTC Gold/Silver Bullion, and seek advice from an independent financial advisor if you require.