Forex Marketz Daily Forex News – Fully Markets Update
Gold futures contracts gained ground at the start of the Asian trade session on Friday thanks to dismal U.S. labor data. The bullion is still on track for its biggest weekly loss in over a month as traders hope more countries ease lockdown orders as the Covid-19 pandemic shows some signs of peaking.
The widely traded and popular spot gold futures contract, as of 12:40 am, was up 0.3 percent to trade at $1,684.35 per ounce. The spot contract shed two percent on Thursday.
The spot contract is on track for a weekly loss of 2.5 percent. This would be its biggest weekly decline since mid-March.
The U.S. gold futures contact, for front end delivery, was down 0.1 percent to trade at $1,691.90 per ounce.
Gold Traders Monitor Weekly U.S. Unemployment Claims
According to the U.S. Bureau of Labor Statistics, weekly unemployment claims in the United States rose by over three million. Since March 21, 30.3 million Americans have filed for first time unemployment benefits.
Other economic data also showed a record collapse in consumer spending as well as household consumption data. The first quarter U.S. gross domestic product also contracted. This, should have supported the safe haven yellow metal.
Trader Sentiment Improves as Lockdown Orders Ease
The reopening guidance for the White House economic committee expired yesterday after being in place for two week. Nearly 25 states in the Union are now starting to ease lockdown restrictions and opening restaurants, retail and other business in an attempt to kick start their virus-stricken economy and labor market.
Recent reports show that U.S. state and local governments could need close to $1 trillion in fiscal stimulus to help recover from economic blow from the Covid-19 pandemic. House Speaker Nancy Pelosi and the Democrats are already designing another round of stimulus relief.
The yellow metal tends to benefit from accommodative monetary policy and stimulus measures as traders look at non-fiat currency alternatives as rates are low.
