Gold Rises as Continuing Unemployment Claims Rise Unexpectedly
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.
Gold Prices Drop as Private Payrolls Fall Less Than Expected in May
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.
Huge Surge in Personal Income and Record Drop in Consumer Spending, Gold Rises
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.
Gold Spikes as Initial Jobless Claims Rise 2.1 Million
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.
Durable Goods Orders Fall 17.2% in April, Gold Sees Strong Gains
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 Figures Below Original Estimate, Gold Prices Rise
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.
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