In our Commodity Education Series, we will explain you about the about the most common terminologies used in Commodity Trading, Major US Economic Data and their probable impact on Comex as well as Indian Commodity Market. In this series, our first topic is – What is Non-Farm Payroll Data and How it impacts Bullion Prices?

Non-Farm Payroll Data or NFP is released on the first Friday of every month, at 07:00 PM IST

So, let’s understand, what is it in simple terms?

US Nonfarm Employment Change, also known as Nonfarm Payroll Data, is a measure of the change in the number of people employed in the US economy, excluding farm workers, government employees, and employees of private households during the prior month.

Bullion prices, including gold and silver, can be affected by a variety of economic and financial factors, including employment data. Generally, stronger employment data may be seen as a sign of a healthy economy.

In simple words the more people employed will be good for the economy and vice versa in case of less number of people employed.

Let’s understand this with data figures?

If actual Non Farm Payroll Data figures come more than the forecast figures, then it would be considered as GOOD for economic growth and a NEGATIVE sign for GOLD.

While if Non Farm Payroll Data actual figures come less than forecast figures then it would be considered as NEGATIVE for economic growth and a POSITIVE sign for GOLD.

“However, it is important to note that there are many other factors that can also influence bullion prices, and the relationship between employment data and bullion prices is not always straightforward.”

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Team Indian Market View