US unemployment claims fall to lowest level since March
At 12:30 GMT, the US economy released the unemployment claims reading, at 0.751 million in the week ending October 24, the lowest level since March, better than forecasts of 0.810 million, vs. 0.791 million in the previous week after it was revised from 0.787 million. This data is positive for the US economy.
US economy grows at best pace ever
At 12:30 GMT, the US economy released the advance GDP reading for the third quarter of 2020, which grew at the best rate ever by 33.1%, higher than forecasts of 32.1%, compared to a 31.4% contraction in the second quarter (the worst recession in the US history).
Dollar jumps to 2-week high ahead of US growth data
The US dollar rose broadly on Thursday, to hit a 2-week high and extend its gains for the fourth straight day, as concerns mounted about the second wave of the coronavirus, and ahead of the US economic growth data for the third quarter.
The dollar index rose more than 0.3% to the highest since October 19 at 93.75 points, after opening at 93.45, and a high of 93.33 points.
The index gained 0.35% yesterday, posting its third straight daily gain against most major currencies.
To curb the coronavirus spread, the French government announced yesterday a full lockdown starting Friday for a month, and the German government ordered to close bars, theaters, and restaurants, from November 2 until the end of the month.
These developments, which are indicators of the second wave rapid spread, threaten any recovery that happened in the global economy following the first wave.
Investors are anticipating key US data releases later today, led by the GDP reading for the third quarter, after the US economy suffered its worst recession in history during the second quarter.
The US GDP growth is expected up 32% in the third quarter, compared to a 31.4% contraction in the second quarter.
US unemployment claims are expected down 14 thousand to 773 thousand in the week ending October 24, from 0.787 million during the past week.
Gold tries to recover from 4-week low with US growth data in focus
Gold prices rose on Thursday, within recovery attempts from the 4-week low that was hit yesterday, to shrug off the US dollar's broad rise against its peers, and ahead of the release of the US GDP reading.
Gold prices rose more than 0.4% to $1,885.03, after opening at $1,876.73, and a session-low of $1,875.39.
The yellow metal lost 1.7% yesterday, posting the biggest daily loss since October 6 and a 4-week low of $1,869.37, as investors liquefied their holdings.
The US dollar index rose about 0.2% against a basket of major currencies today, extending its broad rally for the fourth straight day.
The greenback shined as the best alternative investment, due to concerns about the global economy and the impact of the second Covid-19 wave in most parts of the world.
The French government announced yesterday a full lockdown starting Friday for a month, and the German government ordered to close bars, theaters, and restaurants, from November 2 until the end of the month to curb the coronavirus spread.
Investors are anticipating key US data releases later today, led by the GDP reading for the third quarter, after the US economy suffered its worst recession in history during the second quarter.
Gold stocks at the SPDR ETF fell 8.47 metric tonnes yesterday, in the biggest daily drop since Sept. 23, to reach the lowest level since Sept. 17 at 1,258.25 metric tonnes.