EDITOR'S NOTE: Once again, gold refuses to close below the critical support level of $1,780 an ounce. The yellow metal has been rising for six straight days, partly supported by disappointing news last Thursday, as jobless claims increased, much higher than analysts had expected. The tight labor market is something to keep an eye on. The further we are from full employment and participation, the greater the chances that inflation will continue to rise due to higher wage demands. Aside from this, investors are holding their breath for the much-awaited PCE report on Friday. A worse-than-expected reading may prompt the Fed to tighten more aggressively. Gold’s downswing may be attributable to rising interest rates. But if you remember the 1970s, gold skyrocketed despite interest rates surging to double digits. Gold is a hedge against negative Fed perception. And given the Fed’s recent assessments and actions, there’s every reason to believe that America’s faith in the Fed may be hitting a hard limit.
CHICAGO, May 19 (Xinhua) -- Gold futures on the COMEX division of the New York Mercantile Exchange rose on Thursday as the U.S. dollar weakened.
The most active gold contract for June delivery increased 25.3 U.S. dollars, or 1.39 percent, to close at 1,841.2 dollars per ounce.
It was the largest daily percentage rise for gold since April 12.
Disappointing economic data released on Thursday supported gold. U.S. Labor Department reported that U.S. initial jobless claims increased 21,000 to a seasonally adjusted 218,000 for the week ending May 14, the highest level since January.
The Philadelphia Federal Reserve reported that its gauge of regional manufacturing activity fell sharply to 2.6 in May from 17.6 in April. It was the lowest level of activity since early 2020.
The National Association of Realtors reported that U.S. existing home sales fell by 2.4 percent to a seasonally adjusted annual rate of 5.61 million.
Silver for July delivery rose 36.4 cents, or 1.69 percent, to close at 21.908 dollars per ounce. Platinum for July delivery rose 29.3 dollars, or 3.17 percent, to close at 953.7 dollars per ounce. Enditem.
Originally published on China.org.cn.