Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Gold Rises on Poor U.S. Job Numbers, Rising COVID-19 Cases

Published 11/25/2020, 11:53 PM
Updated 11/26/2020, 12:03 AM
© Reuters.

By Adam Claringbull – Gold was up on Thursday morning in Asia, as investors looked to the save-haven asset on the back of weak U.S. jobs data, rising COVID-19 numbers, and as a hedge against a fall in stocks.

Gold futures edged up 0.19% at $1,809 by 1:03 AM ET (5:03 AM GMT).

After recent falls on the back of promising COVID-19 vaccine news sending investors toward risk-positive assets, gold is back up as U.S. data highlights the ongoing reality of the coronavirus epidemic. Stocks reached record highs earlier in the week.

U.S. weekly jobless claims have risen for the second week running, with 778,000 claims filed, as opposed to the forecast 730,000. The numbers pulled back the optimism that had been fueling stocks and other risk-on investments, demonstrating that the effects of the COVID-19 pandemic are far from over yet.

The data clearly highlighted the divergence between positivity driven by the vaccine and the near-term COVID-19 issue," Stephen Innes, chief global market strategist at financial services firm Axi, told Reuters, noting that the report also boosted the chances for further stimulus.

"The vaccine narrative has watered down gold's appeal immensely and it will continue to do so until we finally move from a deflationary world into an inflationary world," Innes added.

Global coronavirus numbers show no signs of slowing their growth at present, with cases worldwide past the 60 million mark, 12.77 million of them in the U.S alone, according to Johns Hopkins University data.

The U.S. Federal Reserve released the minutes from the latest Federal Open Market Committee meeting. Policymakers have been looking into ways to support the markets, with some analysts expecting the Fed to extend bond purchase maturation. This, combined with a weakening dollar, is giving some support to gold, which is seen as a hedge against inflation.

3rd party Ad. Not an offer or recommendation by See disclosure here or remove ads .

"With the widespread distribution of a coronavirus vaccine unlikely before H2 2021, central banks are likely to remain accommodative," ANZ analysts said in a note.

Latest comments

still struggling to rise gold did not rise and it may fall no one knows anything mystery or surprise if it rises .a huge chunk of investors lost a lot of money during these ten hours i didn't i got away people losing trust in the institutions that should clarify the road not make obstacles in sports you get all the minute details when teams are worth billions of dollars we traders are forced to stay ignorant may be we make profit God forbid
gold price might surprise you
gold is making step down, the a lateral break, the a next step down and the lateral again. Ni free market act like this.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.