|Day's range||1,671.70 - 1,723.20|
(Bloomberg) -- Gold posted the longest run of weekly losses since September as surprisingly better U.S. job numbers provided further signs the global economy is picking up faster than anticipated, curbing haven demand.A key gauge of payrolls rose by 2.5 million, trouncing forecasts for a sharp decline following a 20.7 million tumble the prior month. The jobless rate fell to 13.3% from 14.7%.“The U.S. unemployment rate has shocked everyone because the number was much lower than the market expectation,” Naeem Aslam, chief market analyst at Ava Trade, says in an emailed message. “This is a mind-blowing number and shows that the economy is improving.”After climbing to a seven-year high in April, bullion’s haven appeal has weakened as more economies reopen awash with stimulus following coronavirus lockdowns. Global equities are near the highest since early March amid optimism for a quick economic recovery. And holdings in gold-backed exchange-traded funds fell for the first time since April on Thursday, ending the longest run of inflows in more than a year.Gold futures for August delivery fell 2.6% to settle at $1,683 an ounce at 1:30 p.m. on the Comex in New York. Prices are down 3.9% this week, a third straight weekly drop, the longest losing streak since mid-September. Spot gold was 1.9% lower.A Bloomberg Intelligence index of senior gold miners also took a hit, falling 4.7% so far this week and heading for the worst such drop since March. The index was dragged lower in part by Agnico Eagle Mines Ltd.’s 13% decline in Toronto and Newmont Corp.’s 7.9% loss in New York.Still, U.S.-China tensions, risks around the global recovery and expectations of more stimulus may support prices. The European Central Bank announced a larger-than-expected boost to bond-buying on Thursday and investors are awaiting plans for the next round of U.S. stimulus.Even though gold prices may face a near-term correction, the metal may climb toward a record in the second half of this year as yields remain low and real rates stay negative, according to Metals Focus Director Nikos Kavalis.Some banks have raised forecasts on the metal. J.P. Morgan Asset Management changed its recommendation on gold and other precious metals to overweight, and Credit Suisse raised its price expectations, seeing the metal averaging as high as $1,800 an ounce in 2021, according to a Friday research note. Both banks see U.S. dollar weakness and inflationary pressures supporting prices.Holdings in gold ETFs are still near a record high, according to initial data compiled by Bloomberg. Assets fell by 2.1 tons to 3,129.2 tons as of Thursday, though they are up more than 20% so far this year.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Investors' penchant for risk is honed on the hopes of an economic salvage, resulting in a gold price dip for the third consecutive week.
The British pound has rallied significantly during the week and what can only be described as a parabolic break out.
The Euro has rallied rather significantly during the week but seems to be running into trouble near the 200 week EMA.
Today and next week the S&P; 500, market sentiment, volatility, Put/Call Ratio have created the perfect storm for blow-off top and reversal.
The US dollar has rallied a bit during the trading session on Friday, perhaps mainly in reaction to the jobs number which came out much better than anticipated
The British pound has taken out to the upside again during the trading session on Friday after a better than anticipated jobs report.
Silver is losing ground as demand for precious metals decreases as traders bet on a robust recovery from the coronavirus crisis.
Physical gold dealers in India offered the highest discounts in about two months this week as customers kept away with coronavirus cases in the country continuing to mount, while Singapore saw steady safe haven demand. In thin volume trade, discounts of up to $32 an ounce were offered over official domestic prices in India, the highest since early April. The domestic price includes a 12.5% import and 3% sales tax.
Gold is trading 1.8% lower this morning following better-than-expected U.S. economic data releases.
The direction of the EUR/USD on Friday is likely to be determined by trader reaction to 1.1334.
Mohammed Haider, a security worker in Iraq's southern oilfields, thought he was safe after signing a new one-year contract to guard oil facilities. Haider had been hired to drive vehicles for a British security firm around the giant West Qurna 1 oilfield that produces hundreds of thousands of barrels of crude each day - part of OPEC member Iraq's principal source of wealth. Haider is one of thousands of workers in Iraq's oil sector who were laid off this year after a fall in oil prices caused by the COVID-19 pandemic, and who struggle to find any other source of income.
S&P; 500 futures are gaining ground in the premarket trading session after better-than-expected unemployment rate and non farm payrolls reports.
Gold ETFs report record inflows during the January-May period as investors continue to pile onto the metal seen as a safe haven during turbulent times.
As Great Lockdown was positive for the gold prices, the Great Unlock will be bad, right?
A shutdown of production facilities over the weekend could spike prices higher on Monday.
The best thing for short-term gold traders to do at this time is to wait for a pullback into a value area like $1621.90 to $1582.40.
Iraq, which had one of the worst compliance rates in May according to Reuters, agreed to the additional pledge, OPEC sources said.
The research explores how "central banking for all" via digital currency could affect commercial banks.
The EUR/USD has rallied towards 1.1390 zone after yesterday’s ECB. The EUR/USD has rallied for a ninth consecutive day.
Spot gold slid 2% to $1,675.70 per ounce at 11:08 a.m. ET (1508 GMT). U.S. gold futures fell 2.8% to $1,678.40. "We had significantly stronger-than-expected U.S. payroll numbers - an increase of 2.5 million versus an expectation of a decline of 7.5 million - that 10-million swing has brought forward expectations of the economic recovery in the United States," said Bart Melek, head of commodity strategies at TD Securities.