Gold price rises, attempts to resume its bullish rally as investors watch for key economic reports
New York (Mar 26) Gold prices attempted to snap a two-day skid Thursday morning, as investors watch for economic reports that could help provide insights about the impact of the coronavirus outbreak in the world’s largest economy, the U.S.
Investors were keying on a report on jobless claims due at 8:30 a.m. Eastern Time, which may show their highest weekly rise on record, reflecting a swath of business closures and the cessation of normal personal activities as the federal and local governments attempt to curb the spread of the deadly illness.
“During a global crisis to the scale of which the world is currently facing, we would think of a safe haven as something that can provide orderly liquidity at times when other assets may not,” wrote Steve Land, co-head of the Franklin Gold and Precious Metals Fund, in a Thursday note.
Investors were also absorbing the passage by the U.S. Senate of a $2 trillion coronavirus relief bill late Wednesday, designed to help the economy weather the economic impact from the disease. However, the bill must be passed on Friday by the House to send it to President Donald Trump who is almost certain to sign it into law.
Gold for April delivery GCJ20, 1.280% on Comex was up $8.90, or 0.5%, to reach $1,642.30 an ounce after the precious commodity shed 1.7% on Wednesday.
The number of people who applied in mid-March for unemployment benefits, known as jobless claims, is forecast to zoom to a record 2.5 million from 281,000 in the prior week.The report will be released at 8:30 a.m. Eastern Time.
“Traders and investors are squarely focused on Thursday morning’s weekly jobless claims report, which is expected to show an enormous and record-setting rise of 1.5 million claims, or more, in the latest reporting week,” wrote Jim Wyckoff, senior analyst at Kitco.com, in a daily research note.
Meanwhile, a second reading of U.S. gross domestic product also is due at 8:30 a.m., with a report on international trade in goods set to be released at the same time.
Among other metals Wednesday, May silver SIK20, -0.693% fell 9 cents, or 0.6%, to reach $14.755 an ounce, after rising 4.3% a day ago.
May copper HGK20, -1.089% shed 2 cents, or 1.1%, to $2.18 a pound.
April platinum PLJ20, -2.45% lost $22.30 an ounce, or 3%, to $724.90 an ounce following a 6.2% rise in the previous session, and June palladium PAM20, -4.120% gave up $91.30, or 4.1%, at $2,156.30 ounce after a nearly 26% gain.
MarketWatch
