Corona Virus
Stay Safe, FollowGuidance
Fetching Location Data…
James Hyerczyk
Comex Gold

Gold futures are trading higher on Friday, putting it in a position to post a second straight week of gains on a weaker U.S. Dollar as fragile U.S. jobs data dented hopes of an economic recovery. Meanwhile, the dollar is on track for a weekly decline against a basket of major currencies, making gold more attractive for foreign investors.

At 09:36 GMT, December Comex gold is trading $1962.80, up $12.90 or +0.66%.

US Economic News

The number of Americans filing new claims for unemployment benefits fell less than expected last week and applications for the prior period were revised up, suggesting the labor market recovery had shifted into low gear amid fading fiscal stimulus.

But jobless claims remained elevated at 860,000, while both housing starts and the Philadelphia Fed business index fell and trading marked a risk-off sentiment.

The Philly Fed came in at 15, matching the forecast, but coming in below the previously reported 17.2. U

Weekly Unemployment Claims were reported at 860K, higher than the 825K estimate, but lower than last week’s upwardly revised 893K.

Building Permits were 1.47 million units, lower than the 1.51m forecast and previously reported 1.48m.

Housing Starts showed a 1.42 million unit increase, missing the 1.47m forecast and 1.49m previous number.


Near Zero Rates Globally Keep Central Banks at Forefront

Near-zero Interest rates globally and demand for hedge protection against perceived inflation have helped gold surge nearly 29% so far this year.

Continuing the trend, the U.S. Federal Reserve on Wednesday vowed to keep interest rates near zero for a long time.

On Thursday, the Bank of England said it was considering negative interest rates, while the Bank of Japan signaled readiness to ramp up stimulus.

Short-Term Outlook

Slow and steady demand is helping to boost gold prices this week. This may not please the short-term speculators but it complies with the longer-term outlook for lower interest rates for several more years.

Gold prices should remain supported over the near-term especially heading into the November elections, but gains could be limited by extreme stock market weakness if gold investors are forced to sell positions to cover losses.

The price action suggests we’re not likely to see a huge short-term price spike until the U.S. Congress passes a stimulus package. However, there are no signs of that taking place over the short-run as Republicans and Democrats remain miles apart.

For a look at all of today’s economic events, check out our economic calendar.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.