CNBC/REUTERS

Gold hits 3-week high as US-China dispute fans growth concerns

“Gold prices gained for a fourth straight session on Friday, hitting a more than three-week high as rising U.S.-China trade tensions added to fears about the global economy already reeling from the coronavirus pandemic.

Spot gold was up 0.2% at $1,732.63 per ounce, after hitting its highest since April 23. Bullion has risen nearly 2% so far this week. U.S. gold futures were steady at $1,740.20.

“Gold has been consolidating for weeks and finally broke free yesterday, the momentum from that move could be sustaining the rally,” OANDA analyst Craig Erlam said. “When something has been consolidating for so long, the breakout can be quite explosive as stops are triggered and longs initiated. I feel it may be a combination of the (U.S.) jobless claims catalyst and technical factors here.”

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MARKETWATCH/Mark DeCambre

Gold heads to highest in May as U.S. economic data highlights impact of coronavirus

person holding gold bar“Gold prices headed higher on Friday as U.S. economic data underscored the damage from the COVID-19 pandemic on business activity in the America, providing safe haven support for bullion at around its highest level so far this month.

A reading of U.S. retail sales tumbled by a record 16.4% in April and fell 16.2% excluding automobile sales and gas price, due to lockdown measures implemented to slow the worst outbreak in more than a century.

Meanwhile, a reading on business activity in the New York area, the New York Fed’s Empire State business conditions index, rose 29.7 points to minus 48.5 in May, the regional Fed bank said Friday, marking the second-lowest reading on record. Economists had expected a reading of minus 65, according to a survey by Econoday.”

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BLOOMBERG/Justina Vasquez and Elena Mazneva

Gold, Silver Race Higher on Fear of Second Virus Wave

breaking out“Gold jumped to a three-week high after bleak U.S. government data underscored how hard coronavirus-related shutdowns have hit the world’s largest economy.

Bullion headed back toward its peak in April, when prices hit the highest since 2012, after U.S. factory production plummeted in April by the most in records back to 1919. And a gauge of U.S. retail sales plunged through the record set just a month earlier.

“Everybody must have realized it, but it’s just more evidence that the reality is this is a pretty bleak economic picture right now,” Phil Streible, chief market strategist for Blue Line Futures LLC, said by phone. “People are continuing to pile into gold because that weak economic picture is going to continue to drive interest rates lower.”

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KITCO/Neils Christensen

Gold price pushes to session highs following 16.4% drop in April retail sales

people walking in shopping area“Gold prices are at session highs holding near a one-month high and is reacting slowly to extremely disappointing economic data as U.S. consumers forced to stay at home last month significantly cut back on shopping.

U.S. retail sales fell 16.4% in April following March’s revised decline of 8.3%, according to the latest data from the U.S. Commerce Department, released Friday; the data missed expectations as economists were forecasting an drop of 12%.

According to reports, this is the biggest drop in retail sales since the data has been collected. Last month was the previous record.

“The modern retail sales data series dates back to 1992 and this is double the worst fall on record,” said Adam Button, senior currency strategist at Forexlive.com”

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