MCX Gold Below 45146 Sell 500—1000 Lots, Small Traders Jo Bhi Mile Book Kar lena – Neal Bhai Reports
“The main driver of rising gold prices is the weak labour market outcome in the United States. This suggests continued fiscal and monetary support, which is broadly supportive of gold,” said National Australia Bank economist John Sharma.
Millions more Americans filed claims for unemployment benefits last week, lifting the number of applications to 30.3 million since March 21, data showed, amid a record collapse in consumer spending in March.
The harsh data came despite elaborate stimulus measure from the U.S. government and the Federal Reserve, which retained its benchmark interest rate at near zero.
Read More : MCX Gold Tips Update – Gold Full Target Done 45950 To 44740 – Neal Bhai
The U.S. House speaker said state and local governments could need close to $1 trillion in aid over several years to cope with the aftermath of the pandemic as lawmakers began plotting more relief legislation.
Bullion tends to benefit from widespread stimulus measures as it is often seen as a hedge against inflation and currency debasement.
Gold, however, was down about 2.2% for the week, its biggest drop since mid-March.
Expectations for easing in restrictions and optimism surrounding a potential COVID-19 treatment drug weighed on bullion, analysts said.
“The virus is far from over, but the wave of positive news had taken some air out of gold’s wings,” said Edward Moya, a senior market analyst at broker OANDA.
Half of all U.S. states forged ahead with their strategies for easing restrictions on restaurants, retail and other businesses in hopes of reviving the virus-stricken commerce.
