There is a window to buy open right now if you’re ready to move fast, thanks to stronger than expected data in the USA. The precious metals is trading down -0.46% this morning (Friday) on the back of better than predicted US jobless claims data and positive construction figures.
On the housing front, the Commerce Department reported a 5.8% increase in April housing starts, with the confirmed 1.669 million units higher than the expected 1.6 million analysts had called for.
Weekly new jobless claims were also down by a figure of 26,000 persons according to the latest data, though 900,000 workers still filed for benefits, meaning unemployment remains high.
US stocks are also feeling optimistic at the moment after the peaceful swearing in of President Biden on Wednesday, which again creates a useful window to buy. This positivity could well be tested as the President begins work by laying out his economic stimulus package and implementing measures to get the COVID-19 fight back under way after branding the previous administration’s handling of the crisis ‘dismal’.
Another sign that the slight dip in gold prices will be nothing more than a fleeting moment is an indication from the European Central Bank that its ultra-loose monetary policy will persist for the long term.
The President of the ECB, Cristine Lagarde spelt out concerns following a routine monetary policy decision yesterday (Thursday) warning, “Overall, the risks surrounding the euro area growth outlook remain tilted to the downside… The news about the prospects for the global economy, the agreement on future EU-UK relations and the start of vaccination campaigns is encouraging, but the ongoing pandemic and its implications for economic and financial conditions continue to be sources of downside risk.
“In this environment, ample monetary stimulus remains essential… We are prepared to adjust all instruments. Nothing is off the table.”