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Consumer prices in the US fell for the third month in a row in May, dropping 0.1% after a major 0.8% drop in April according to the Labor Department. The April decline was the largest drop since December 2008. Annually, consumer price inflation (CPI) rose 0.1% in May and 0.3% in April. Economists had forecast no monthly change to consumer prices in May and 0.2% growth annually.

Hello traders, happy Monday and welcome to our weekly preview of the trading week with a focus on the economic data, news flow, and market narrative that looks most likely to have an impact on the price of gold as well as the US Dollar and other correlated assets.

Happy Friday, traders. Welcome back to our weekly market wrap, focusing on the news flow, narratives, and economic data that had the biggest impact (and may continue) on gold prices, as well as the charts for the US Dollar and other correlated assets.

The May employment report came as a big surprise to market analysts with 2.5 million jobs added to US payrolls. Analysts had forecast losses of 7.5 million jobs and unemployment at 19%. The current rate of unemployment is 13.3% compared to 14.7% the month before according to the US Bureau of Labor Statistics. 20.5 million jobs were lost in April, and the May labor market report may indicate that things are turning around in the US economy.

An additional 1.877 million Americans have applied for unemployment benefits in the week ended May 30, slightly above expectations of 1.843 million claims. 42 million Americans have filed for claims since the onset of the coronavirus pandemic and subsequent labor market collapse. The claims for the previous week were revised from 2.13 million to 2.12 million.

Fewer jobs were lost than expected in the private sector last month, although the figures are still very high by historical standards. 2.76 million workers were laid off from the private sector in May according to the latest ADP National Employment Report which released on Wednesday morning. The 2.76 million drop pales in comparison to the 9 million losses expected and the 19.55 million jobs lost in April, indicating that job losses resulting from the coronavirus outbreak have likely peaked.

Good morning, traders. Welcome to our regular preview of the trading week ahead, with a particular focus on the economic data, news, and market narratives most likely to impact the price of gold, as well as the US Dollar and other correlated assets. Gold prices are opening the week slightly higher than Friday’s closing, as US stock markets are opening relatively flat following a tumultuous weekend in the States and ahead of unknown escalations between the US and China over trade.

Happy Friday, traders. Welcome back to our weekly market wrap, covering the last four trading days with a focus on the news, market narratives, and economic data that had the most impact on the price of gold (and may continue to do so,) as well as the Dollar and other correlated assets.

Consumer spending in April fell 13.6% vs. a drop of 12.8% expected. Meanwhile, personal income saw a major increase of 10.5% vs. a decline of 5.9% expected. With tens of millions of people unemployed and many more facing economic uncertainty, it’s likely that spending came in below expectations as consumers exercised caution and frugal spending in recent weeks. Consumer spending in March was revised from a decline of 7.5% to a drop of 6.9%.

An additional 2.1 million Americans filed for unemployment benefits last week, bringing the total number of people who have sought unemployment since March to 40 million. Claims have been in the millions for ten weeks in a row as the coronavirus pandemic continues to collapse the once-flourishing US labor market. The Labor Department report released on Thursday morning reveals that 21 million people are receiving benefits on an ongoing basis.

Durable goods orders saw a major drop in April of 17.2%, above expectations of 19% decline following a 16.6% drop the month before. The data strengthens the view that the upcoming Q2 GDP contraction will likely be the worst in recorded history. New orders for capital goods declined, as did shipments, according to the latest report released on Thursday by the Commerce Department.

Q1 GDP was revised downward in the second estimate by 0.2% to show 5% contraction vs. the originally reported decline of 4.8%. Q1 2020 marks the largest quarterly decline since Q4 2008 dropped 8.4% during the height of the Great Recession. Q1 was dragged down by the coronavirus pandemic which only began to have an impact in the last two weeks of the quarter, meaning Q2 figures are likely to be far worse – many economists are predicting the worst GDP drop in US history, with estimates of up to 40% contraction.