Editor’s note: This page is updated frequently with the most important news on the gold price, including economic news and other key drivers. Please make sure to bookmark this page and check back on a regular basis.
Gold up on soaring jobless claims
March 26, 2020 Update: Gold prices could bring an end to a two-day slide today. The yellow metal reversed course as investors awaited key economic reports that are expected to offer more insight into the severity of the coronavirus’ impact on the economy.
Unemployment claims soared to a record high of more than 3 million, shattering the peak seen at the height of the Great Recession, which was 665,000 in March 2009. The previous record high was set in October 1982 when jobless claims reached 695,000. Analysts reporting to Dow Jones had been predicting that jobless claims would reach 1.5 million for last week, although individual analysts were predicting higher numbers than that. The week before last, there were 282,000 jobless claims, which also beat the consensus estimate.
Kitco News reports that some of the rise in gold prices is driven by safe-haven demand, while some is driven by chart-based buying.
Gold price soars amid Fed’s unlimited stimulus
March 23, 2020 Update: The gold price is up nearly 5% at more than $1,550 an ounce as the Federal Reserve rolled out unprecedented stimulus measures for the U.S. economy. The central bank said it will aggressively purchase securities, including corporate bonds and mortgage-backed securities.
It will also open Main Street lending. The Fed said it will spend an “unlimited” amount of money to try to keep the economy on track. St. Louis Fed President James Bullard warned that unemployment could reach 30%, while GDP could fall 50% for the second quarter.
Gold bears have had the technical advantage, although the price did soar past the resistance level of $1,550, indicating a bullish tilt during morning trading today.
Gold rallies with stocks
March 17, 2020 Update: Gold prices rallied today, climbing back above $1,500 an ounce and showing no signs of reversing course again. Meanwhile, stocks also rallied as the S&P 500 was up 56 points and still gaining, while the Dow Jones Industrial Average was up 125 points and still gaining.
Blue Line Futures President Bill Baruch told Kitco News on Monday that there will be “a tremendous buying opportunity” when gold and other asset prices stabilize. He believes the yellow metal will hit a new record high in the next year or year and a half.
Investors have been selling off gold to support losses in other asset classes, reducing its effectiveness as a safe-haven asset.
Gold price falls below $1,500 an ounce amid global selloff
March 16, 2020 Update: The gold price fell below $1,500 an ounce for the first time this year as investors sold assets to cover the losses they racked up in stocks and other asset classes. According to The Street, stocks have given up over $14 trillion in value in just the last month alone.
The decline in gold is surprising given its status as a safe-haven …read more