Rolling coverage of the latest economic and financial news, as the pound strengthens as data shows US economy cooling
Figures yesterday showing a rise in US jobless claims last week has also weakened the dollar.
Initial unemployment claims rose by 11,000 to 239,000 in the week to April 8, the first rise in three weeks, suggesting the US economy is losing momentum.
“These economic data have reinforced the market’s assessment that the cycle of interest rate hikes is nearing its end, which makes gold attractive to investors as it does not pay interest itself.”
“The appetite to sell the U.S. dollar in the wake of soft inflation data, lower yields and calls for a lower terminal Fed rate have been a huge driver for gold.”
Elsewhere yesterday, another asset class that benefited from the prospect of a pause in the Fed’s rate hikes were precious metals.
For instance, gold prices (+1.26%) climbed to their highest level in over a year, closing at $2,040/oz, which leaves it just short of its all-time high in nominal terms, when it hit an intraday level of $2,075/oz back in August 2020.
