The U.S. recent data showed the total nonfarm payroll employment increased by 169,000 in August, and the unemployment claims remained at 7.3 percent away from the estimated data of 7.4 percent. On the other hand, China’s exports rose 7.2 percent in August from a year earlier while imports advanced 7 percent, resulting in a $28.6 billion trade surplus making it now the second largest economy in the world. These data showed that the Chinese economy is back to its roadway and is recovering as Chinese economy is supported by manufacturing and exports.

On the way round, the ongoing geo-political tension in the Middle East and the potential military attack on Syria by the U.S. is likely to be hauled back till UN data releases. The U.S. President Barack Obama after returning from the G-20 summit couldn’t get support on the independent limited military attack on Syria from most of the participant nations.

The gold production in South Africa, the sixth largest gold producer, has ended its strike after negotiating at 8% payoff to the gold miners. This will definitely increase the gold supply. The upcoming Fedsep is likely to hit the gold prices too. The investors are expecting the Fed to implement the tapering policy from September. This has increased the hedge fund’s combined holdings in gold future raising the long position holdings increased by 3.6% whereas the immediate delivery of gold dropped down by 0.5% and the gold for December delivery rose by 1% NYMEX.

The WTI crude dropped as the futures rallied down by 0.7%. The Brent for October settlement has declined by 0.5% on London-based ICE Futures Europe Exchange. The oil prices moved according to the Syrian issue as the limited military strike by U.S. is likely to be delayed. China the second largest gold and oil consumer has increased its oil imports compared to its exports. Investors decreased their net long positions in WTI by 3.6%.

So, the improving Chinese economy is supporting the bullion gold and oil consumption level whereas the speculative investors are following the Syrian news and the potential Fed policy in making the investments in gold and oil and are not much optimistic in these markets. They are on a wait and watch situation.

Note: This blog is just an expression of the author’s opinion and cannot be deemed responsible for any losses incurred.