First-time jobless claims unexpectedly dropped during the last week while the number of Americans already receiving benefits declined to an almost 16-year low, pointing to sustained strength in the labour market. According, to the US Labour Department, the initial claims for state unemployment benefits declined 4,000 slipping to a seasonally adjusted 264,000 for the week ended June 4. Moreover, this drop is below the consensus of economists who expected the number to rise to 270,000. This was a welcome bit of news after last week's cluster munch. Despite, the May's hiring slowdown, now data is below the 300,000 mark, already for 66 straight weeks, showing the longest streak since 1973. However, still, the hiring slowdown shows a sluggish US economy. Moreover, the US growth came in at an annual rate of 1.4% from October through December and 0.8% from January through March. Moreover, a strong Greenback has hurt American exporters by making their products more expensive overseas, while low oil and natural gas prices have forced energy companies to slash investment. Overall, the report indicates companies remain reluctant to reduce headcounts even after figures last week showed May was the worst month for hiring in almost six years.
According to the latest report, the US crude futures advanced for a third consecutive day on Wednesday, reaching new 2016 highs. The US benchmark posting a nearly 11-month closing record. On the New York Mercantile Exchange, West Texas Intermediate crude for July delivery added +0.62% and rose 87 cents, or 1.7%, to settle at $51.23—showing the highest close for a nearby contract since July 15. Meanwhile, August Brent crude, increased 0.42% the global oil benchmark, reaching $1.07, or 2.1%, to finish at $52.51 a barrel on London's ICE Futures exchange, its highest close since October. According to the analysts, futures were affected in a positive way boosted by reports of another attack on oil facilities in Nigeria. They were also buoyed by data from an industry trade group, the American Petroleum Institute, which on Tuesday said that US crude inventories had fallen by 3.6 million barrels. Also, crude found support from continued supply disruptions, as well as China import data and a decline in crude inventories. By the way, prices have nearly doubled since hitting 13-year lows earlier in this year mostly since companies have slashed spending on new drilling, and unplanned outages in Nigeria and Canada helped reduce the global oversupply of crude.
Upcoming fundamentals: Michigan's consumer confidence and US rig count.
Gold increases gains to 1,265 on Thursday
Daily chart: Gold continued scoring gains on Thursday, as the US Dollar lost its value. The yellow metal previously had reached the level of 1,260 on Wednesday and it increased its gains to 1,265 on Thursday. At the moment, the metal is trading at 1,264.91, as a decline is observed on Friday morning, which might be profit taking from the recent week of gains. However, the decline faces a weekly R1 at 1,259.11 and if the pair passes the resistance, then it could go low as the monthly pivot point at 1,239.18. In the meantime, aggregate technical indicators support the forecast of a decline for today.SWFX traders increase bearish sentiment on Friday
Spreads (avg,pip) / Trading volume / Volatility
Market participants foresee the price of gold at 1,275 by the end of August
Traders who were asked regarding their longer-term views on gold between May 10 and June 10 expect, on average, to see the metal around 1,275 by the end of August. Generally, 59% (+1%) of participants believe the price will be generally above 1,250 in ninety days. Alongside, 31% (-3%) of those surveyed reckon the price will trade in the range between 1,100 and 1,250 over the next three months