By Capital Gold Group, Special for USDR
As market reports go, employment numbers have historically been some of the biggest movers in gold bullion prices. Next week, the market will witness the unveiling of the ADP employment and Nonfarm Payrolls reports, and it’s likely not going to like what it sees.
Significant weakness in the retail sector indicates these jobs numbers will likely be negative. The impact of these numbers could snowball demand for precious metals, which is why we advocate investing in gold on the next drop.
Analysts from Reuters and Seeking Alpha find that COT speculative positions are now at very attractive levels for entry in both physical gold and silver.
For the third week in a row, the COT Report reflected speculative longs cut back on their long positions by a sizable 22,495 contracts. What’s unusual about this is that gold price rose .59% during this period – which suggests strength in gold outside of these traders pullbacks.
The COT report also shows that speculative gold shorts added 6,130 contracts at this time, which helped push the net short percentage to over 30%, according to Seeking Alpha. This is an indicator of an up swing and indicates an opportune time to acquire gold.
Without a crystal ball, it’s impossible to accurately predict how the markets will react to any reports – but we can safely assume that today’s overinflated stock market can not endure many more shocks. Low jobs numbers could deter the Federal Reserve from their plan to raise rates twice more before the end of 2017, which would send gold up even higher.
In summary, negative jobs numbers are a major incentive to buy gold this week. The bullish COT report conflicts with unusually low demand for gold and silver. The unusually low demand is providing a rare buying opportunity, in the vein of unusually low prices.
Acquiring an investment during a historic “low” is the most ideal investment strategy for gains. Physical gold is an internationally recognized safe haven investment.
“Gold has never been worth zero,” says Jonathan Rose, CEO and President of Capital Gold Group. “Having physical tangible wealth is an insurance policy against continuing rising geopolitical turmoil.”
SOURCE Capital Gold Group