Gold price is in a new chart pattern and there is no telling how high it will go – Wells Fargo
The gold market has been stuck in a fairly narrow range for nearly two months, and time is quickly running out if the precious metal is going to see a new high above $2,000 an ounce by year-end.
However, one market analyst says that gold’s destination is less important than the journey that it is currently on. In a recent interview with Kitco News, John LaForge, head of real asset strategy at Wells Fargo, said that he is maintaining his updated year-end target at $2,100 an ounce; however, he added that time is running out to achieve that goal. Rather than looking at year-end targets, he said that investors should pay attention to the long-term uptrend.
LaForge noted that since hitting an all-time high above $2,000 an ounce, gold has managed to hold critical support around $1,850 an ounce. He added that this is an indication of underlying strength in the marketplace.
“The fact that we pull back to $1,900 and then don’t really get below that for long, I think we’re on a new technical chart now,” he said. “Direction really does matter more than price targets because when it breaks out when you get a new chart like this, you just don’t know how high.”
CNBC/Yen Nee Lee
Covid vaccine won’t be an ‘instant stimulus’ to the U.S. economy, warns economist
A Covid-19 vaccine will not result in an “instant stimulus” to the U.S. economy, which still needs greater fiscal support as its recovery loses momentum, an economist said on Wednesday.
Markets globally rallied after Pfizer and BioNTech announced on Monday that their coronavirus vaccine was more than 90% effective in preventing the disease among those with no evidence of prior infection.
The vaccine news and better-than-expected U.S. jobs growth in October are “encouraging” developments for the world’s largest economy — but that doesn’t reduce the need for further economic stimulus, said Carl Tannenbaum, chief economist at Northern Trust.
“On the employment front, we still have 10 million Americans that were working in January that are not working today. And those that remain unemployed are seeing a much longer track back to full employment, so they will continue to need a certain amount of support,” he told CNBC’s “Squawk Box Asia.”
“And the other element that I think is a headwind here in the United States … is state and local governments whose budgets are in terrible disarray at the moment for loss of revenue, they’re laying people off, cutting services and that’s bad for economic activity.”
CNN Business/Tami Luhby
Millions of Americans have been out of work for months
Eva Gryczon had never been out of work for more than a couple of weeks until this year. Even after she lost her job at a physical therapist staffing firm during the Great Recession, the Las Vegas resident landed an office position at a gaming company within a month or so.
But when the coronavirus pandemic forced the city to shut down this spring, she lost both her job as an executive assistant at a slot machine manufacturer and a gig as a guitarist at local performances.
Though she scans the job postings daily and has applied for dozens of roles, she has not been hired. The closest she got was the final stage for a position at another slot machine company last month, but she wasn’t selected. Gryczon is also trying to leverage a real estate license she got nearly two decades ago into a full-time career.
“The crazy thing is I have an excellent resume and many years of very good work experience as a loyal, hardworking professional with recommendation letters, as well,” said Gryczon, who is surviving on savings and her husband’s income as a corporate sound designer after her $423 in weekly unemployment payments ran out. “I just hope things start turning around and jobs start coming open again.”
As the coronavirus pandemic continues, the ranks of the long-term unemployed like Gryczon are soaring.
Nearly 3.6 million Americans were out of work for at least 27 weeks in October, a stunning jump of nearly 50% from September, according to the jobs report released Friday by the Bureau of Labor Statistics. They now account for one-third of the unemployed, up from less than one-fifth a month earlier.