08.05.202010:04:00UTC+00Gold Prices Rise Ahead Of US Jobs Data

Gold prices rose on Friday to hover near a two-week high and the dollar nudged lower as investors await the U.S. jobs report for April, expected to show a severe impact from the coronavirus pandemic.

Spot gold rose 0.4 percent to $1,733.10 per ounce, while U.S. gold futures were up 0.45 percent at $1,733.30 as investors price in a negative U.S. interest rate environment for the first time.

According to analyst estimates, U.S. employment is expected to plunge by about 22 million jobs in April, driving the unemployment rate up to 14.0 percent. That would blow away the record dive seen during the 2007-2009 recession.

Unemployed U.S. workers filed 3.2 million new claims for jobless benefits last week, the fewest since the week ended March 14 but still fifteen-times early March readings, the Labor Department reported Thursday.

Atlanta Federal Reserve Bank President Raphael Bostic said on Thursday that the worst-case scenario can be avoided and the Fed will do everything it is legally allowed to do.

Federal Reserve Bank of Minneapolis President Neel Kashkari also said that another Great Depression can be avoided because of aggressive action taken by the central bank.