GOLD PRICE

US consumer sentiment is at the highest level in 15 years according to the results of the University of Michigan Consumer Sentiment Survey released on Friday. The index rose to 104.2 in May, outperforming all market expectations.

The number of Americans filing applications for unemployment benefits fell more than expected last week with 212,000 applications vs. 220,000 expected. The labor market continues to show signs of strength, buoying up other sections of the US economy amid an ongoing trade war and a global economic slowdown.

US homebuilding saw stronger than expected activity in April with a 5.7% rise in housing starts, with increases in both single-family and multi-family housing units. Data for the month before was also revised upward.

The Philadelphia Federal Reserve reports that its manufacturing index hit a four-month high of 16.6 in May, well above the reading of 8.5 seen in April as well as the expected figure of only 9. Based on the data, it’s possible that inventories are finally unwinding after being stockpiled throughout the ongoing trade war, a view also supported by the recent NY Fed manufacturing report.

Consumer spending fell 0.2% in April, a sign that the overall economy might be slowing. Retail Sales in March were revised up from a 1.6% increase to a 1.7% increase following the decline in February. Retailers could take further hits if President Trump imposes the additional tariffs, many of the new proposed tariffs are focused on consumer products.

Industrial production in the US declined by -0.5% in April, brought low by a major drop in factory output due to the ongoing reduced demand for autos and auto parts. The rate of growth was the slowest in two years, and the 2^nd worst since the last recession.

The New York Federal Reserve announced on Wednesday that the Empire State manufacturing survey reached a six-month high in May, climbing from 10.1 in April to 17.8 in May. The result is well above market expectations of a 2-point decline to 8.0.

Good morning traders, welcome to another week in the markets. We’re off to an energetic start to the week, after the mild quiet of Sunday evening and overnight trading was broken by the news of China’s trade retaliation which has sunk the Dollar and US Equities and lifted gold prices more than $10 at time of writing.

Good morning traders, and happy Friday. There wasn’t a great deal on the economic calendar this week, so without much to breakdown we can send everyone home early for the weekend. So, what kind of week has it been?

Consumer prices in April rose 0.3% in April, in line with market expectations following a 0.4% gain in March. Annually, the Consumer Price Index (CPI) was slightly below expectations. Inflation pressure remains tame for the time being.

Economists forecasted jobless claims to decrease to 220,000. The figure was a slight miss as jobless claims reported a seasonally adjusted 228,000 for the week ending May 4^th.  The number of people still receiving benefits after the first week increased 13,000 to 1.68 million for the week ending April 27^th. April added 263,000 jobs with the unemployment rate dropping to 3.6%.

The US trade deficit grew slightly in March by 1.5% to $50.4 billion, and the trade gap with China sunk to the lowest level in three years due to sinking imports in an ongoing trade war between Washington and Beijing.