The recent economic reports show that the current coronavirus crisis will be bigger than the Great Recession. What does it imply for the gold market?
US Economic Data Paints a Gloomy Picture
This week was full of new reports about the US economy. And guess what, I don’t have good news… First of all, let’s start with the update about the weekly initial unemployment benefits. In normal times, the initial claims are not too keenly watched by investors. But in times of a pandemic, they are very informative. The spike in the initial claims may even become the symbol of this crisis. Anyway, the number of new claims for the unemployment benefits declined from 6.6 million in the previous week to 5.2 million in the week from April 4 to April 11, as the chart below shows.
Chart 1: Initial jobless claims from April 2019 to April 2020