Expectations of jump in US jobless claims pushes gold down

Bengaluru — Gold prices fell on Thursday as expectations of a surge in US jobless claims due to the coronavirus outbreak eclipsed a huge US stimulus package and kept alive a rush for cash among investors.

Spot gold fell 0.8% to $1,600.22/oz by 5.08am GMT, after falling 1% earlier in the session.

“There is no positive growth story here until business reopens, and that might see all these assets, that have been benefiting from the US Federal Reserve’s [recent] stimulus announcement, including gold, come back down,” said DailyFx currency strategist Ilya Spivak.

“What we are looking at is a period of consolidation in gold and you are seeing this across a variety of assets.”

The US Senate on Wednesday overwhelmingly backed a $2-trillion bill aimed at helping unemployed workers and industries hurt by the coronavirus epidemic, as well as providing billions of dollars to buy urgently needed medical equipment. Asian stock markets nudged up, but gains were capped as investors were torn between relief at the package’s passage through the Senate, and concern as to whether it will be enough to weather the coming storm.