Gold prices recovered slightly in the global market over the second weekly decline in the employment claims.
The Gold Spot recovered from the level of $1266.35 (Day’s low on 2nd May 2019) to the present level of ~$1270. The prices fell previously over the golden outlook of the U.S. FED on nations’s economic conditions. The unemployment claims in the United States rose for the second consecutive week, after a period of steady decline from the level of 229k (for the week ended 8th March 2019) to the level of 192k (for the week ended 12th April 2019). The steady decline in the unemployment claims marked improvement in the economic conditions, which in turn, exerted pressure on gold prices previously.
As per the data, the U.S. Weekly Unemployment Claims stood at 230k for the week ended 26th April 2019 against the market expectation of 220k.
The increase in unemployment claims in the United States was initially expected to support the gold prices by the market participants; however, the rise in the claims was just slightly above the market consensus of 220k, which in turn, supported the gold prices slightly.
However, a rise in the factory orders in the United States coupled with improved consumer sentiments previously prevented any sharp gain in gold prices. As per the data, the factory orders in the United States for April grew at 1.9%, as compared to the forecast of 1.0% and a decline of 0.3% previously.
The improvement in factory orders, along with a previously revelled array of positive data prevented any sharp gain in gold prices, despite, a substantial increase in unemployment claims. The dollar prices improved over the positive array of data, and the Dollar Index recovered from the level of 97.15 (Day’s low on 1 May 2019) to the present level of 97.96. The increase in dollar prices coupled with market optimism, amid improved economic data, prevented any sharp upside in gold prices.
Gold miners on the Australian Stock Exchange traded on a mixed note.
The companies such as Regis Resources, Millennium Minerals, Ramelius Resources plunged substantially.
Regis Resources Limited (ASX: RRL) started the trading session at A$4.500 and marked a low of A$4.315. The share prices of the company closed at A$4.340, down by 4.62% as compared to its previous close.
Millennium Minerals Limited (ASX: MOY) fell significantly and marked a close of a$0.115, down by 4.17% as compared to its previous close.
Ramelius Resources Limited (ASX: RMS) started the day’s session at A$0.740 and dropped to mark a low of A$0.725. The stock of the company closed at A$0.730, down by 3.95% as compared to its previous close.
While on the other hand, junior gold players such as Blackham Resources (ASX:BLK), Pantoro Limited (ASX:PNR), and West African Resources (ASX: WAF) rose significantly on a percentage change basis to end the last trading session of the week on a positive note. The share of these companies closed by 11.11%, 7.14%, and 3.39 per cent up as compared to their previous close respectively.
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