Gold rose over 2% as investors steered to the safe haven in anticipation of higher U.S jobless claims.
After 2 days of losses, gold [XAUUSD] pushed up over 2% to 1208 on Wednesday. Thursday sees additional small gains in late Asian trading. The gold market is expecting intraday volatility as data from the U.S on economic growth is due out both Thursday and Friday.
Gold is essentially linked to the U.S dollar as the commodity is greenback dominated and a weaker dollar usually corresponds with gold rising as the metal becomes cheaper for other currency holders. EURUSD was up a soft 0.6% at European trade opening.
The U.S unemployment data in focus on Thursday comes in two weekly figures: Continuing Jobless Claims are due to fall to 2,405K from 2,416K, but Initial Jobless Claims are expected to show 285K more people unemployed as opposed to 282K last week; this number will break the 3 week run of positive figures and demonstrates that, though the U.S economy is still growing, the pace is slowing down.
On Friday it is the turn of U.S Nonfarm Payrolls; a monthly figure that displays economic growth through job creation - which is one of the crucial components of the FED’s economic policy. The figure for March is estimated at 245K, versus the previous month’s figure of 295K. If the figure comes in above the forecasted 245K, this will continue the above-expectation run that started in December 2014.
With Friday being a bank holiday in the U.S, trading will most probably be concentrated on Thursday and thin on Friday.
MT4 chart: Gold
MT4 chart: EURUSD
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