GoldPrice

Private companies terminated 27,000 positions for the period through March 12, before the worst impact of the coronavirus outbreak was felt, according to the latest data from ADP and Moody’s Analytics. While these positions have likely been ended for the foreseeable future, the actual number of people out of work is much higher. Three million Americans applied for unemployment benefits in a single week earlier this month, the highest figure by far in the history of the country.

Business conditions in Chicago worsened this month according to the latest PMI reading, which came in at 47.8 in March vs. 49 in February. Any reading below 50 indicates contraction. The Chicago PMI has been straddling the 50-point mark of contraction for almost a year, and the latest reading was the ninth consecutive month with a reading under 50. Conditions may have been pushed down further due to the worsening economic climate created by the coronavirus pandemic.

Home prices rose 3.9% in January vs. 3.7% the month before, according to the S&P CoreLogic Case-Shiller Indices. The 10-city composite index rose 2.6% vs. 2.3% in December, and the 20-city composite index rose 3.1% in January compared to 2.8% the month before. While home prices may have been heating up at the start of the year, this is likely to see a sharp reversal due to the financial instability surrounding the coronavirus pandemic in the US.

Hello traders, welcome to our preview of the week ahead, with a focus on the economic data and market narratives that are likely to have the most meaningful impact on gold prices, as well as the US Dollar and other associated markets.

Happy Friday, traders. Welcome to our weekly market wrap, focused on the news, narratives, and economic data that had the biggest impact on gold prices, the Dollar, and other related assets his week.

Personal income rose 0.6% to $106.8 billion in February according to the latest report released by the Bureau of Economic Analysis (BEA) on Friday. Disposable personal income rose 0.5% and personal consumption expenditures (PCE) rose 0.2%. The data was gathered in a period directly preceding the severe escalation of the coronavirus outbreak throughout the United States.

Real GDP expanded 2.1% annually as expected, according to the latest report released by the US Bureau of Economic Analysis (BEA) on Thursday. This marks the third such estimate of Q4 GDP. The financial markets have largely shrugged off the results amid the more current news of record layoffs throughout the country, with Q4 figures unlikely to have a strong bearing on upcoming economic performance in light of the ongoing coronavirus pandemic.

A record number of Americans applied for jobless benefits last week as the impact of the coronavirus pandemic begins to make itself felt throughout the US economy. A staggering 3.283 million people filed for unemployment during the week ended March 21, far surpassing the previous record of 700,000 which occurred in 1982. The figure is far worse than any economic forecast, and adds to the 281,000 people who applied for benefits the week before.

Durable goods orders rose 1.2% in February to $2.9 billion from 2.49 billion, outperforming the expected decline of -0.8%. January figures were revised higher from -0.2% to -0.1%, according to the latest report from the US Census Bureau released on Wednesday.

The Richmond Fed manufacturing PMI rose from -2 to 2 in March, seeing low volatility despite the coronavirus impact on global supply chains. Shipments and new orders saw increases in March, while employment ticked downward.

Good morning, traders. An unusual Tuesday drop-in today, as the volatile moves we’ve seen in the gold market this morning warrant some discussion. Gold prices are trading with strength near well above $1600/oz, a key recovery level and a line of major psychological “round number” resistance. While the yellow metal, along with silver, had been moving steadily higher since yesterday afternoon and through the overnight trading session, a functional breakdown of one of gold’s traditional pricing mechanisms led to prices swinging wildly in the early morning hours and powering as high as $1625 in the spot markets before reeling back.

The US Markit manufacturing PMI dropped from 50.7 to 49.2 in March, beating expectations of 42.8. Meanwhile, the Markit services PMI underwhelmed, falling from 49.2 to 39.1 vs. 42.8 expected. The service sector has been hit particularly hard by the coronavirus outbreak with the closure of many bars, restaurant, tours, and other services, and this is expected to worsen over the coming months.