Fundamental Economic Reports In Gold Trading

1. Fundamental Economic
Reports In Gold Trading

2. Points To Be Covered Today:
 Fundamental Economic Reports in Gold
Trading: Major Market Movers !!!
 Non-Farm Payrolls.
 Average Work Week.
 Average Hourly Earnings.
 Unemployment Rate.
 Jobless Claims.
 Gross Domestic Product – GDP.
 Trade Balance.

3. Fundamental Economic Reports in Gold
Trading
 The following Economic Reports are the most closely followed
Economic Report in the Forex and Gold trading market.
 These reports will cause volatility once they are announced,
meaning there will be some pip movement in currency pairs and
other financial instruments such as Gold after these news reports
are announced.
 The amount of pip movement will depend on the volatility rating of
each news reports, news marked with importance of 3 exclamation
marks cause high volatility, followed by those of 2 exclamation
marks and then those of 1 exclamation mark.
 Most investors will mainly trade 3 and 2 exclamation mark news, as
these reports will generally cause between 30 and 100 pip
movement once these news reports are announced.
 The news reports followed by traders are shown below and reports
of the news can be found within a Financial Economic Calendar.

4. Fundamental Economic Reports in Gold
Trading: Major Market Movers
 Employment Report
Importance: !!!
 Source: Bureau of Labor Statistics, U.S.
Department of Labor.
 Release Time: First Friday of the month at 8:30
EST, reports data for the prior month
 The employment report survey produces the Non-
Farm payrolls, Average Work Week, and Average
Hourly Earnings figures, to name a few. Both
surveys cover the payroll period.

5. Non-Farm Payrolls
 The single most important piece of data contained in the
employment report generally and the establishment survey
specifically is Non-Farm Payrolls.
 As the name implies, Non-Farm Payrolls measure the number of
people on the payrolls of all non-agricultural businesses.
 The monthly changes in payrolls can be quite volatile, occasionally
varying by more than 200K from one month to the next.
 Non-Farm Payrolls figures offer the most timely and comprehensive
snapshot of the economy, these is a measure of American Middle
Class and this figure translates to people with money and are ready
to spend.
 American economy is highly fueled by consumerism with about 75%
of GDP driven by consumers; the higher the Non-Farm Payrolls
number the more the consumers.

6. Average Work Week
 The Work Week, also referred to as hours worked, is
an often under rated indicator in the establishment
survey.
 The average number of hours worked by employees
on Non-Farm Payrolls is an important determinant
of both industrial production and personal income in
any given month.

7. Average Hourly Earnings
 The last indicator from the establishment survey
which is worthy of close inspection is Average Hourly
Earnings, which is important for two reasons.
 Alongside total man-hours, the average earnings
figure gives us a good indication of personal income
growth during the month.
 Second, the earnings figures are closely watched
during periods of strong economic growth for
evidence of increasing wage pressures.

8. Unemployment Rate
 Unemployment Rate - Percentage of employable
people actively seeking work, out of the total number
of employable people determined in a monthly
survey by the Bureau of Labor Statistics.
 An unemployment rate of about 4% - 6% is
considered healthy. Lower rates are seen as
inflationary due to the upward pressure on salaries;
higher rates threaten a decrease in consumer
spending.

9. Jobless Claims
 A weekly compilation of the number of individuals who filed for
unemployment insurance for the first time.
 This indicator, and more importantly, its four-week moving
average, portrays the employment situation in the labor market.
 Jobless claims are an easy way to gauge the strength of the job
market.
 The fewer people filing for unemployment benefits, the more the
people having jobs, and that tells investors a great deal about the
economy.
 Nearly every job comes with an income which gives a household
spending power.

10. Jobless Claims-I
 Spending greases the wheels of the economy and keeps it
growing, so the stronger the job hiring, the healthier the
economy.
 By tracking the number of jobless claims, investors can
gain an insight of how the job market is performing. If
wage inflation threatens, it's a good bet that interest rates
will rise, bond and stock prices will fall, and the only
investors who will be in a good mood will be those ones
that tracked jobless claims and adjusted their portfolios
to anticipate these events.
 The lower the number of unemployment claims, the
stronger the job hiring is, and vice versa.

11. Gross Domestic Product
 It is the broadest measure of economic activity.
 Annualized quarterly percent changes in GDP reflect the growth
rate of total economic output.
 The figures can be quite volatile from quarter to quarter.
Inventory and net export swings in particular can produce
significant volatility in GDP.
 The final sales figure, which excludes inventories, can sometimes
be helpful in identifying underlying growth trends as inventories
represent unsold goods, and a large inventory increase will boost
GDP but might be indicative of weakness rather than strength.
 The broad components of GDP are: consumption, investment, net
exports, government purchases, and inventories. Consumption is
by far the largest component, totaling two thirds of the GDP.

12. Trade Balance
 This is statement of a country's trade in goods (merchandise) and
services. It covers products such as manufactured goods, raw materials
and agricultural goods, as well as travel and transportation.
 It is the difference between the value of the goods and services that a
country exports and the value of the goods and services that it imports.
 If a country's exports exceed its imports, it has a trade surplus and the
balance is said to be positive. If imports exceed exports, the country has
a deficit and its trade balance is said to be negative.
 A positive or negative balance may simply reflect a change in the relative
cost of domestic products compared with international prices. For
industries that rely heavily on exports, like the auto sector, a positive
balance may reflect a higher international demand, which can mean
more jobs in that industry.

13. Fundamental Economic
Reports In Gold Trading

14. THANKS FOR LISTENING
Fundamental Economic
Reports In Gold Trading