Gold pushes sharply higher on big initial jobless claims number – up 4.3% on week and up 9.5% year to date
Gold pushes sharply higher on big initial jobless claims number – up 4.3% on week and up 9.5% year to date by Michael J Kosares for USA Gold
Gold pushed sharply higher in early trading after the U.S. government announced another 6.6 million Americans filing for unemployment last week. The yellow metal continues to attract the attention of safe-haven investors concerned about severe disinflation (even deflation) in the short term, skulking financial system risks and the potential for inflation down the road. Gold is up $30 at $1688 on the day, up 4.3% on the week (ending today due to Easter weekend), and up almost 9.5% year to date. Silver is up 43¢ on the day at $15.49, up 7.6% on the week, but down 15.3% year to date.
“On the heels of the deflationary swoon,” writes Blue Line Capital’s Bill Baruch in a CNBC opinion piece “silver broke through a trendline dating back to 2001, as seen in the chart below. Its recovery, however, has a beautiful bull-flag pattern with the rally from March 20 to 25 being the flagpole and the consolidation over the coming days being a perfect flag pattern. This aligns a needed close above $15 in silver to not only break out of the bull-flag pattern but regain the 2001 trend line and fuel a massively bullish rally in gold, one that we would expect silver to join.”