Gold jumped to trading at a session high late Thursday morning. This renewed strength comes from a dovish Fed outlook, an iffy session for the U.S. dollar, and a rally in the U.S. stock market. The jobless claims report further fueled the rally in the precious metal after a jump of near 53k bringing the employment claims total to 535K. This jump was unforeseen as early predictions had the claim number at roughly 513K.
Further momentum was added when the Fed said it would pause monetary tightening policies due to potential global market risks and interest rates will stay between 2.25-2.5%. These combining factors are what led April gold to trade at a $1330.20 an ounce, a 1% increase.
Market analyst, Jim Cramer, does not foresee this rally to end saying, “We are big gold believers here. Now gold is at $1,300, we think gold is going to $1,400-$1,500. We suggest that everybody have a little bit of gold in their portfolio,” Cramer said on Wednesday in an article on Kitco News.
Keep an eye on gold moving forward.
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Gold Apr ’19 Daily Chart