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Gold jumps; record US jobless claims lift safe-haven demand

Gold costs jumped over 1% on Thursday, as document top U.S. jobless claims for a 2nd week in a row intensified fears of economic damage because of the coronavirus and drove investors against the safe-haven metal.

Spot gold gained zero.9% to $1,605.60 in keeping with ounce by 10:49 am EDT (1449 GMT), whilst U.S. gold futures rose 2.4% to $1,629.20.

"The reality of that (jobless claims numbers) setting in along with the equities starting to turn lower, you get some fresh rounds of safe-haven buying in gold," mentioned Bob Haberkorn, senior marketplace strategist at RJO Futures.

The number of Americans submitting claims for unemployment advantages doubled from closing week to a document top of 6.65 million, as more jurisdictions enforced stay-at-home measures to curb the coronavirus.

U.S. stock indexes fell after an explosive increase in U.S. jobless claims.

"The longer this thing drags out, the worse the situation will be in longer term. Gold is an asset that should do well through all this turbulence, all the money that is being printed to combat the effects of the virus and the interest rates being dropped to zero," Haberkorn mentioned.

The pandemic has inflamed over 935,000 other people internationally and killed 46,906, and compelled countries to make sure restrictions and lockdowns to battle the outbreak.

"We think that gold will likely continue to play an important role in investor allocations over the next few months given all the turbulence. However, volatility will remain quite high," mentioned Edward Meir, analyst at ED&F Man Capital Markets in a note.

"Signs of prolonged economic weakness and increasingly aggressive stimulus measures pursued by governments and central banks should provide gold with something of a floor."

Indicative of sentiment, holdings on this planet's greatest gold-backed exchange-traded fund, SPDR Gold Trust, rose zero.18% to 968.75 tonnes on Wednesday, their absolute best since October 2016.

Among other precious metals, palladium fell 1.1% to $2,191.31 in keeping with ounce, whilst platinum gained 1.1% to $725.08.

"Auto data out of the U.S. and Europe paint a bleak picture. Chinese data is beginning to show green shoots and should be supportive to palladium and to a lesser extent platinum," MKS PAMP mentioned in a note.

Silver jumped three.three% to $14.45 in keeping with ounce.

The international sliver marketplace shall be undersupplied for a 3rd 12 months in 2020 as investors are lured by decade-low costs, offsetting expected falls in its use by jewellers and trade, a document forecast.

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