By Barani Krishnan
Investing.com - Tumbling economic data and the jobs situation in the United States, where millions continue to file first-time unemployment claims each week, are prompting hedgers to look again at gold, even as equity markets rediscover their risk appetite.
U.S. gold futures for June settled up $37.30, or 2.2%, at $1,725.80 per ounce after data on Thursday showed worker productivity dropped at its fastest pace in more than four years in the first quarter amid the largest drop in hours since 2009.
Spot gold, which tracks live trades in bullion, rose $32.62, or 2%, to $1,718.18, after the Labor Department said another 3.17 million Americans lost their jobs for the week to May 2, bringing to more than 33 million the number who have been laid off since the Covid-19 pandemic struck the United States.
The dollar fell, helping gold’s ascent, even as stocks on Wall Street rose 1% on the day.
“U.S. stocks are roaring higher as earnings season nears its end, dismal data continues, and following a few more aggressive actions from central banks,” said Ed Moya, analyst at online trading platform OANDA.
“But gold prices are also benefiting from dismal economic data from the world’s largest economy. Gold seems like it is ready to run higher as disastrous economic data will likely only lead to further global monetary easing.”