Gold prices climb as investors parse jobless claims report
“Gold futures on Thursday were headed higher as investors digested an economic report on the labor market, which highlights a growing sense of the challenges the U.S. economy may face in recovering from the COVID-19 pandemic.
U.S. unemployment data showed that those seeking jobless benefits rose 2.98 million in week ended May 9. The number is higher than consensus estimates from economists polled by MarketWatch for 2.7 million but indicates that applications for unemployment compensation peaked at a seasonally adjusted 6.9 million in late March and has fallen steadily over the past month.
The precious metal gained support from comments from Federal Reserve Chairman Jerome Powell who on Wednesday described the path forward for the domestic economy from the deadly pathogen as uncertain, though the central-bank boss appeared to reject the idea of pushing key interest rates, which stand at a range between 0% and 0.25%, to subzero levels, which would support bullion prices.”
Gold tests first resistance; silver and platinum quiet
“Gold has been moving up the last couple of days and has reached the first resistance of $1,730 in the June futures. The pattern looks ready to break out out to the upside and may be reversing the recent pressure it has be under. Remember, gold has been consolidating with a lean to the downside since early April but held support.
If gold can break through the $1,730 level in the June futures, the next target is $1,775. The fact that gold has made higher lows for the last week adds momentum to a possible breakout. We remain long and will stay there until the pattern is violated to the downside.
Silver and platinum remain in almost identical patterns, with both looking like they are getting ready to make big moves. Based on our positions, we assume these moves to be higher. However, the pattern itself is based on confusion, which suggests that silver and platinum can go either way. Levels to watch include: silver, $15-$16, July futures; and platinum, $750-$850, July futures.”
Weekly jobless claims total 2.981 million, bringing coronavirus tally to 36.5 million
“New filings for unemployment claims totaled just shy of 3 million for the most recent reporting period, a number that while still high declined for the sixth straight week, according to Labor Department figures Thursday.
The total 2.981 million new claims for unemployment insurance filed last week brought the coronavirus crisis total to nearly 36.5 million, by far the biggest loss in U.S. history. The count announced last week count was revised up by 7,000 to 3.176 million, putting the weekly decline at 195,000 between the two most recent reports.
Economists surveyed by Dow Jones had been expecting the latest count of new claims to be 2.7 million.”