Market Uncertainty Is A Golden Opportunity For Some

On Friday, gold prices rose as investors waited for U.S. non-farm payrolls data to deliver a clearer picture of the Federal Reserve’s timeline for a rate hike.

The commodity has seen a marked increase over the past week as uncertainty around the globe has driven traders to seek security.

Greek Woes

The eurozone has been a major driver of market worries this week as Greece’s newly elected government continued to be at odds with the nation’s creditors.

Despite reports that the two sides were willing to negotiate, the European Central Bank announced that it would no longer accept Greek bonds in exchange for funding unless Prime Minister Alexis Tsipras is able to strike a deal with the troika over Greece’s bailout program.

Since Tsipras has been very vocal about his plans to reverse Greece’s previously agreed to bailout conditions, many worry that the nation will eventually be forced to exit the eurozone.

Mixed U.S. Data

Data from the U.S. has clouded estimates for the U.S. Federal Reserve’s rate hike, something that has been positive for gold.

Although the bank was initially expected to raise rates early in 2015, many believe the Fed will push back its decision to tighten until the U.S. economy is on more stable ground.

The stronger dollar coupled with weak foreign growth widened the U.S. trade deficit in 2014, causing many to lower their expectations for U.S. GDP. If Friday’s non-farm payrolls report underwhelms, gold prices can be expected to rise even further as a weak figure would likely keep expectations for a rate hike at bay.