GoldPrice

Federal Reserve Chairman Jerome Powell made some measured statements on the current state of the economy on Friday morning, with financial markets experiencing steep volatility beforehand. Powell reassured the public that the Fed is dedicated to extending the current period of economic expansion despite headwinds such as the US/China trade war.

The number of Americans filing applications for unemployment benefits dropped 12,000 last week, back near a 50-year low. Jobless claims came in at 209,000 for the week ended August 17, indicating continuous underlying strength in the labor market.

Policymakers who attended the July Federal Reserve meeting reportedly cited the trade war as a major, ongoing threat to economic progress, as well as the general slowdown seen worldwide. The rate cut introduced in late July was aimed as insurance against these recessionary pressures.

US home sales in July rose above expectations in July, with a strong labor market and the effects of lower mortgage rates boosting the struggling housing market.

Good morning, traders! Welcome to your weekly look ahead at what matters in the gold and currency markets. At time of writing thing morning, gold prices are lower to start the week but have managed to retake a position above $1500/oz following some deeper weakness starting in the European trading session overnight.

Happy Friday, traders. Welcome back to your recap of the week behind us in the gold markets. At the time of writing, gold is maintaining its gains from Monday’s trading and cruising towards a sixth-consecutive winning week, with spot prices trading neat $1512/oz.

Gold prices saw a brief recovery before dipping further following the release of a consumer sentiment report from the University of Michigan. The report indicates that consumer sentiment hit a 7-month low in August amid growing concerns surrounding the trade conflict between the US and China.

The number of US homes which began construction fell again for the third month in a row in July, led by a sharp drop in the construction of multi-family homes like apartment complexes. At 1.191 million units, housing starts were well below projections of 1.257 million. However, permits, an indicator of future construction, saw a sharp increase.

Retail sales increased by 0.7 percent in July compared to a month prior, significantly better than what economists expected. Retail sales measures purchases at stores, restaurants and online. If you exclude auto sales and gas, retail sales were up 1.0 percent in July. In the May though July period consumer spending increased by a whopping 1.8 percent when compared to the three months prior. Positive retail sales sent gold down about $5 before recovering most of the losses in the ensuing hour.

Business activity indices for New York and Philadelphia released simultaneously on Thursday morning show ongoing expansion in August, easing worries of a decline. While the US/China trade war has had a major negative impact on manufacturing, the latest report showed results well above expectations.

The number of Americans applying for unemployment benefits for the week ended August 10 rose by 9,000 according to the latest report from the Labor Department. Initial jobless claims are now at the highest level since June.

The consumer price index rose 0.3% in July according to a government report released on Tuesday, with price increases in categories like gasoline and rent. The gain is in line with market expectations. The cost of living rose marginally from 1.6% to 1.8%.