Gold Ends Week in $1,600 Zone After Epic U.S. Job Losses

Commodities & Futures
© Reuters. © Reuters.

By Barani Krishnan – Gold dug its heels into the $ 1,600 territory on Friday, ending its second week there, as investors turned again to the comfort of safe havens after epic U.S. job losses for March from the Covid-19 pandemic.

The United States lost 701,000 jobs in March as the pandemic bumped up the nation’s unemployment rate by the most in a month since 1975, the Labor Department said in its monthly employment report on Friday. 

The report came on the heels of Thursday’s weekly jobless claims by the department that showed a record 6.6 million Americans filed for unemployment insurance for the week ended March 28.

on New York’s COMEX settled up $ 8, or 0.5%, at $ 1,633.70 per ounce. For the week, the futures contract also gained about 0.5%.

, which tracks live trades in bullion, was up $ 7.48, or 0.5% at $ 1,621.76 by 4:00 PM ET (20:00 GMT). For the week, bullion dipped 0.1%.

“Gold volatility will remain high over the coming weeks, and despite this down week, prices should be supported in the long term as the impact of Covid-19 intensifies across the world,” said Edward Moya, analyst at online trading platform OANDA. 

”Fiscal and monetary stimulus will likely need to remain in place a lot longer and that should ultimately be the backbone of gold’s bullish stance.”

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