NFP: are you readyWhat is the impact of non-farm data on the gold market?
Non-farm data actually consists of two sets of data, the major non-farm data and the minor non-farm data. As these two sets of data reflect the development of the US economy, they not only affect the US dollar index but also often impact the ups and downs of the gold market.
Good non-farm data indicates a strong economy and is bearish for gold, while poor non-farm data is bullish for the gold market. The major non-farm data is composed of three indicators published by the US Department of Labor's Bureau of Labor Statistics: non-farm employment, the employment rate, and the unemployment rate. Compared to minor non-farm data, the major non-farm data more directly reflects the current economic situation in the United States. Non-farm data is usually released on the first Friday evening of each month, two days later than minor non-farm data. Investors typically wait for the release of the data and make judgments about the specific trend of gold prices to earn profits.
The impact of non-farm data on the gold market is mainly concentrated on these two points in time. The non-farm employment, employment rate, and unemployment rate can directly reflect the development and growth of the manufacturing and service industries in the United States. The better the economic development, the more likely it is to lead to a decline in gold prices, while poor economic development can lead to a certain degree of increase in gold prices.
Overall, non-farm data is just one set of data, so in practical operation, major and minor non-farm data can influence the trend of the gold market, but cannot truly determine the trend of the gold market.
Are you ready for the upcoming non-farm data release tomorrow?
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