Gold Spot Rockhard Support Level $1550 Above $1550, Big Gold Target $1640—$1720
Above $1550 Level, Don’t Sell Gold
The big U.S. data point this week will not be Friday’s monthly employment report (usually the most important data point of the month) but instead Thursday morning’s weekly jobless claims report. The 6.6 million rise was about double the expected gain of just over 3 million, after rising 3.2 million last week. The weekly claims report further confirms U.S. economy has been severely crippled by the coronavirus outbreak.
Global stock markets were mixed in overnight trading. U.S. stock indexes are pointed toward higher openings when the New York day session begins, following Wednesday’s sharp losses.
The important outside markets today see Nymex crude oil prices sharply higher and trading around $22.25 a barrel, on short covering and perceived bargain hunting after hitting an 18-year low of $19.27 a barrel Monday.
The rally in oil prices today is helping to lift the U.S. stock indexes early on. There are ideas the U.S., Russia and Saudi Arabia may be close to agreement on a deal to halt the Saudi-Russia oil-price war. President Trump said he is hopeful an agreement between Saudi Arabia and Russia will be reached soon.
There are more than a few oil market watchers that are skeptical the Russians and Saudis will come to any significant agreement to reduce their oil output levels. Both major oil-producing countries hate the U.S. shale oil industry and are very likely enjoying watching U.S. oil companies suffer. Reports also said China will be buying crude oil for its strategic petroleum reserve.
China reportedly at present has over 1 billion barrels of empty oil storage capacity, at the same time the U.S. has very little to none.
