As the gold price recently surpassed an eight-year high, figuring out what comes next isn’t straightforward. Several macroeconomic developments may have a direct, or indirect influence on the price of this precious metal.
Another Jobs Report is Coming up
In the United States, there have been ample concerns over the current rate of unemployment. A lot of workers and employees are filing for [temporary] unemployment due to the worsening COVID-19 crisis. Given how there are more cases again in a lot of different states, it seems plausible to assume that unemployment figures won’t improve just yet.
The new report will be published next Thursday. This will be done by the US Bureau of Labor Statistics. Depending on what this report entails exactly, the consequences for the gold market may prove quite severe. More bad news will drive demand for safe haven assets, as it has done for the past few months.
UK Q1 GDP Figures
Looking beyond the United States is crucial when it comes to precious metals. In the UK, there will be some very interesting events in the next few days. A lot of people will keep close tabs on the first-quarter GDP figures. It seems unlikely that anything good will be mentioned in the report, but one never knows what will be said exactly.
More Brexit Negotiations
Speaking of the United Kingdom, new Brexit negotiations with the EU are on the agenda for Monday. So far, these negotiations have not had much of an impact on the financial sector. During this current ear-induced climate, however, it may prove to be another catalyst for gold and silver.
Contrary to what most people may think,this will not be the last Brexit-related negotiation round either. Both parties will meet up several times more before everything can be put in writing. The longer that this debacle drags on, the worse the impact on financial markets will be.
US Consumer Confidence
Perhaps the most interesting macroeconomic event is the release of the US Consumer Confidence data. This will take place on Tuesday, and may provide valuable insights as to how US consumers feel about the current markets today.
Depending on that particular sentiment, the future may look promising for all precious metals. After all, the investment options yielding potential profits include gold, silver, and Bitcoin. Everything else has had a very rough year so far, with the worst perhaps yet to come.