The recent US unemployment report was not as expected. Jobless claims numbers suggest the reopening story isn’t having as much of a positive impact on the labor market as hoped. It reinforces the case for more fiscal support to keep the economy on the recovery path. The unemployment claims was more than the forecast which suggests that it is a long way for the recovery.
“The restarting of the economy is going to be slow, it’s going to be uneven and initial jobless claims today reflect that,” said by Kristina Hooper, chief global market strategist at Invesco.
Cleveland Federal Reserve Bank President Loretta Mester said it could take a year or two for the U.S. economy to return to pre-pandemic levels, with the gross domestic product declining by 6% in 2020 and the unemployment rate still around 9% by year’s end.
Fears over the rise of the corona virus continue in Asia, With Beijing’s new infections rising has created a fear of the second wave of corona – virus.
Escalation of tensions between North Korea and South Korea when the North Korean’s attacked the communications office the two shared in the southern territory. Adding to this China and India became involved in a dispute at the border they share and 20 Indian soldiers were killed.
XAU/USD 4 Hours Chart:
Support: 1715.6 (S1), 1706.6 (S2), 1695.7 (S3).
Resistance: 1735.5 (R1), 1746.4 (R2), 1755.5 (R3).
Gold reflects a short term bullish trend but the direction cannot be predicted due to the prevailing market tensions. Fed Powell speech later today is expected to give a direction for XAU/USD.
