Forex Marketz Daily Forex News – Fully Markets Update
Gold futures contracts are staying firm and the spot gold futures contract is still above the key $1,700 per ounce level.
Traders are monitoring reports of more Covid-19 infections out of China and South Korea which has reignited demand in the safe haven yellow metal. The bullion remains in demand despite a gain in the almighty U.S. dollar and global equities.
The widely traded spot gold futures contract, at 1 am GMT, was up 0.2 percent to trade at $1,704.26 per ounce.
The U.S. gold futures contract, for front end delivery, was down 0.4 percent to fact $1,707.70 per ounce.
The U.S. dollar and Asian equities were firmer during the Asian trade session, by lunchtime, as trader sentiment was upbeat thanks to countries starting to ease lock down and social distancing restrictions.
Gold Traders Monitor Covid-19 Infections
There is some bad news as Covid-19 seems to be lingering. South Korea is warning of a second wave of infections as cases are already being reported. This comes a few days after the country was praised for its response to the initial Covid-19 outbreak.
China has reported that a new wave of Covid-19 could be starting. There are a wave of new cased in Northeast China in the Jilin province. This outbreak is being classified as high-risk at the very top of the country’s classification system.
Traders are also watching closely as nations are starting to consider restarting their economies that were close by the global pandemic. The Prime Minister of the United Kingdom, Mr. Boris Johnson, outlined some “conditional plans” to ease lockdown restrictions.
The British Parliament is starting the process to gradually reopen their economy and ease social distancing restrictions.
Over the weekend, Disney announced plans to reopen their theme park in Shanghai as of later today.
Traders Digest U.S. Stunning Job Losses for April
Last month, the United States shed a record number of jobs at a level not seen even during the Great Depression a century before.
U.S. Treasury Secretary Mnuchin gave remarks, on Sunday, as well as an ominous warning that the unemployment levels in the world’s largest economy could “get worse before they get better.”
He said that the nation’s unemployment rate might have already reached percent. After the NFP, for April, showed a record number of American losing their jobs. This number came in at 20.5 million.
