CNN Business/Paul R. La Monica
Gold is still inching toward record high levels despite volatility
Gold prices tumbled on Monday after the Pfizer-BioNTech coronavirus vaccine news sparked a broader market rally. Investors fled safe haven assets like gold, which had surged on worries about the pandemic.
But the price of the gold is still hovering just under $1,900 an ounce — not far from all-time highs above $2,000 earlier this year.
While gold has been volatile, it has benefited from many of the same trends that have lifted bitcoin as well as silver, platinum and other precious metals the past few months. And many analysts are confident gold will just keep on climbing.
The Federal Reserve is likely to keep rates low, even in a Joe Biden administration That will hurt the dollar and make alternative currencies more attractive.
Wall Street is ‘being very cavalier’ about virus cases, election turmoil and stimulus uncertainty, Jim Cramer says
CNBC’s Jim Cramer struck a cautious tone after the stock market closed Wednesday.
There was mixed trading on Wall Street as the Dow Jones Industrial Average slipped while the S&P 500 and Nasdaq Composite both posted gains during the trading day.
“I think this market’s being very cavalier about the fact that we’re running at more than 130,000 new cases per day,” the “Mad Money” host said.
Cramer advised investors to look out for three critical issues that could weigh negatively on the market: rising coronavirus cases, the contested presidential election that Democrat Joe Biden is projected to have won and a collapse in stimulus spending negotiations in Washington.
“I hate to say it, but the Cramer Covid-19 index is back in play if we get one of the nightmare scenarios I just traced out,” Cramer said. “I am not saying these nightmares … will come true,” he added, “but when you’re managing your money, you need to consider potential risk factors.”
Texas, the second-most populated American state, has now reached a grim milestone as the first state to record 1 million recorded Covid-19 cases. The state is second only to New York state, which was severely impacted in the early months of the coronavirus outbreak, in deaths, according to data compiled by Johns Hopkins University.
On Tuesday, the country set a new high for the seven-day average of daily positive tests at 121,153.
Yahoo Finance/Emily McCormick
Jobless claims: Another 709,000 Americans filed new unemployment claims last week
Another 709,000 Americans filed for first-time unemployment benefits last week, marking another modest improvement in the number of those newly unemployed even as coronavirus cases in the U.S. continue to creep higher.
The Department of Labor released its weekly report on new jobless claims Thursday morning at 8:30 a.m. ET. Here were the main results from the report, compared to consensus estimates compiled by Bloomberg:
Initial jobless claims, week ended Nov. 7: 709,000 vs. 731,000 expected and a revised 757,000 during prior week
Continuing claims, week ended Oct. 31: 6.786 million vs. 6.825 million expected and a revised 7.222 million during prior week
The Labor Department report showed an eleventh straight week that new jobless claims totaled below 1 million. But new claims have not yet broken back below 700,000 since the start of the pandemic and have held sharply above levels from before the outbreak. Throughout 2019, new initial unemployment claims were coming in at an average of just over 200,000 per week.
Most U.S. states reported declines in unadjusted new claims last week, led by Georgia with a drop of more than 14,000 initial claims. States grappling with rising new COVID-19 cases including Texas, New Jersey, Kentucky and Florida also reported notable decreases in their numbers of new claims. Washington state, on the other hand, saw the biggest leap last week, with new claims rising by more than 10,000.
$5,000 gold price ‘is not that far out’ – Rob McEwen
Gold’s popularity amongst retail investors is set to rise, and this is going to propel prices to $5,000 an ounce, said Rob McEwen, chairman of McEwen Mining.
“I don’t think $5,000 is that far out. I look at the influence of the social media and how much it’s propelled some of the tech stocks and I’m going to suggest that when people start looking at gold and it becomes a more common topic on social media,” he said.
McEwen said that rising debt levels put the possibility of sovereign default as a real risk of investors.
“The debt loads right now are pretty frightening in the U.S. and many other countries around the world as a result of what’s happening, to do with COVID. There’s a threshold when the debt to GDP gets to a 130% of GDP, there’s a very real likelihood of a default,” he said.