Gold breaks $1800, BOE tapers

“Successful people do what unsuccessful people are not willing to do. Don’t wish it were easier; wish you were better.” — Jim Rohn

MARKET NEWS

Bank of England raises growth forecasts; FTSE 100 hits 14-month high – The Guardian

Britain is on track for the strongest growth since the second world war this year as it stages a faster-than-expected recovery from the Covid-19 pandemic, according to the Bank of England. The Bank raised its estimate for UK GDP growth to 7.25% in 2021, up from a previous forecast in February for growth of 5% this year.

The Footsie ended the day 37 points higher at 7076 points, up 0.5% today. That’s its highest close since the last week of February 2020, during the early stages of the market crash caused by the first wave of Covid-19.

Gold prices top $1,800, settle at highest since February – Market Watch

Gold prices rallied on Thursday, prompting the commodity to settle above the psychologically significant value of $1,800 an ounce for the first time since February, as slipping bond yields and a slightly weaker U.S. dollar offered some support.

Getting above the key level of $1,800 is a “positive as it keeps the series of higher highs and higher lows that began in April in place, and the near-term trend to the upside,” said Dan Russo, portfolio manager at Potomac Fund Management.

Iron Ore, Steel Hit all Time High as Monster Commodity Rally Breaks Records – Zero Hedge

Spot iron ore prices topped $200 a ton for the first time ever, as futures in Singapore and China climbed. Iron ore with 62% content hit $201.15 a ton on Thursday, according to Mysteel. Futures in Singapore jumped as much as 5.1% to $196.40 a ton, the highest since contracts were launched in 2013. 

Crude Oil Price Rose to 7-Week High before Retreat as Inventory Sharply Declined – Action Forex

Crude oil inventory slumped -7.99 mmb (consensus: -2.35 mmb) to 485.12 mmb.  The larger than expected withdrawal initially sent crude oil prices to the highest level since March 8. However, concerns over the pandemic in India led to profit-taking. The front-month WTI contract ended the day at US$65.63/bbl, down 6 cents

FOREX

EUR/USD bulls are seeking an extension ahead of NFP – FX Street

The dollar dropped to its lowest point in three days as global market risk appetite improved ahead of a key US jobs report that may provide clues on when the Federal Reserve will dial back monetary stimulus. 

Canadian Dollar Higher with Commodity Currencies – Action Forex

Commodity currencies continue to trade as the stronger ones entering into US session. In particular, Canadian is helped by extended rally in oil prices. New Zealand Dollar continues to receive support from better-than-expected job data.

MORE HEADLINES

•    Dow jumps 300 points to hit another record close ahead of key April jobs report - CNBC
•    Amazon's Jeff Bezos sells $2B in stock – Fox Business
•    UK sends Navy ships to Jersey as French fishing row escalates - Reuters
•    Square crushes earnings expectations as bitcoin boom continues – Market Watch
•    Fed's Kaplan wants taper talk 'sooner rather than later' - Reuters
•    Turkish central bank sticks to high interest rates after inflation rise - CNBC

ANALYSIS

April jobs report preview: Economists look for 'monster US payroll number' as recovery charges ahead – Yahoo Finance
The U.S. economy likely brought back the most jobs since August last month, with payrolls jumping by 1 million and the unemployment rate improving to a new pandemic-era low as more businesses reopen. 

Every economist polled by Bloomberg predicted a strong increase in payrolls: On the high end, Jefferies economist Aneta Markowska estimated a surge of 2.1 million payrolls for April, while Prestige Economics' Jason Schenker pencilled in payroll gains of 700,000 on the low end. 

CHART

Gold – 4-Hour Candlesticks

  
Source: GKFX Prime Metatrader 4 

XAU/USD has broken above its recent consolidation area to move beyond the 1800 psychological level and is testing the February 23 peak near $1815 per oz. The Double Bottom pattern objective is $1830. - Prepared by Trading Writers*

CALENDAR

*Times in GMT

Source: FX Street Economic Calendar

Source

https://www.fxstreet.com/economic-calendar
https://www.zerohedge.com/markets/iron-ore-steel-hit-all-time-high-monster-commodity-rally-breaks-records
https://news.yahoo.com/uk-govt-condemns-french-threats-082853138.html
https://www.theguardian.com/business/live/2021/may/06/bank-of-england-uk-recovery-ftse-pound-services-eurozone-us-jobs-stock-markets-business-live?page=with:block-60940c0b8f083ed34c4e2b4a#block-60940c0b8f083ed34c4e2b4a
https://www.msn.com/en-us/money/companies/amazons-jeff-bezos-sells-242b-in-stock/ar-BB1gqhLZ
https://www.investing.com/news/stock-market-news/dow-closes-at-record-high-as-cyclicals-rally-ahead-of-april-jobs-report-2498370
https://www.marketwatch.com/story/gold-price-rises-heads-toward-1-800-11620303405
https://www.marketwatch.com/story/square-crushes-earnings-expectations-as-bitcoin-boom-continues-11620333876?mod=home-page
https://www.actionforex.com/action-insight/market-overview/376847-canadian-dollar-higher-with-commodity-currencies-euro-weakens/
https://www.cnbc.com/2021/05/05/stock-market-futures-open-to-close-news.html
https://www.cnbc.com/2021/05/06/turkish-central-bank-sticks-to-high-interest-rates-post-inflation-rise.html