Gold Tests $1,500 as Home Sales Hit 13-Year High in February, but Coronavirus Will Take a Toll
Home sales rose a solid 6.5% in February compared to the month before, the highest pace in 13 years. Analysts expected gains of just 07%. 5.77 million units were sold, with the market boosted by lower mortgage rates. Rates were lower in part due to market fear surrounding the coronavirus outbreak.
Gold Fights Losses Following 70,000 Surge in Jobless Claims, 1 Million Layoffs Expected By End of March
Gold has shaken off losses in today’s session following a major increase in jobless claims. Claims rose 70,000 in the week ended March 14 to 281,000, the highest level since 2017. The last time claims were this high was a result of Hurricane Harvey which damaged infrastructure and resulted in widespread disruption of business activity.
Philly Fed Manufacturing Index Plunges Below 7-Year Low in March, Gold Prices Tick Upward
The Philadelphia Fed manufacturing index fell from 36.7 to -12.7, the lowest reading since the summer of 2012. The markets had expected a steep drop to 8, but the -12.7 reading far exceeds the negative estimates and puts the index firmly in contraction territory.
Gold Hovers at $1,500 as Housing Starts Drop Off in February
Housing starts declined in February following a strong month in January that was aided by unseasonably warm weather. Homebuilding fell 1.5% to a seasonally adjusted annual rate of 1.59 million units in February, according to the latest report released by the Commerce Department on Wednesday.
Gold Prices Volatile as February Industrial Production Figures Do Not Reflect March Recession
Gold prices have seen slight upward momentum despite the release of upbeat industrial production figures for the month of February. US industrial production rose 0.6% last month vs. 0.4% expected and following a drop of -0.5% the month before. The Federal Reserve’s figures show that manufacturing output is down 0.4% from last year.
Key Takeaways
Gold Prices Sink as US Consumer Sentiment Fell Less Than Expected in March Despite Virus Pandemic
Consumer sentiment in March has fallen less than initially forecast according to the latest University of Michigan (UoM) consumer sentiment index released on Friday. The UoM index dropped from 101 in February to 95.9 in March, slightly outperforming estimates. The current conditions gauge fell to 112.5.
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