Gold, oil copper, and iron ore all fell on Thursday as the US dollar rose off the back of more bad news on the American economy.
The US Labour Department reported that 5.25 million people who lost jobs applied for unemployment benefits last week, driving the number of coronavirus-related layoffs to more than 21 million in just one month.
As well, housing starts slumped by more than 22% in March – well above forecasts and the Philadelphia Fed’s manufacturing index fell to -56.6 in April, the lowest reading since July 1980.
That was a day after a similar survey for New York saw a plunge to the lowest level since 1946.
The US dollar was higher against most major currencies with the Aussie dollar down to just over 63 US cents after dipping under that level earlier in the session.
That saw the greenback firm and oil futures end mixed on Thursday, with Brent prices up modestly but US prices ending around 18 years lows.
Prices eased further in US after-hours trading moving into the Asian timezone on Friday morning.
West Texas Intermediate (WTI) crude failed to find support at the key $US20 a barrel level with continuing concerns over the growing global oversupply of crude.
WTI crude for May delivery settled at $US19.87 a barrel in New York unchanged from the day before, which marked the lowest front-month contract finish since February. 7, 2002. The price dipped to around $US19.60 a barrel just before 6 am Friday.
Global benchmark June Brent crude rose 13 cents, or 0.5%, to $US27.82 a barrel in Europe. Brent though was trading above $US28 a barrel.
Oil prices slumped on Wednesday after the International Energy Agency forecast a record drop of 9.3 million barrels a day in oil demand this year. OPEC had a more optimistic forecast on Thursday, estimating a fall of 6.8 million barrels a day for this year.
The near-term demand picture remains the big issue for the oil market as well, with analysts looking for it to continue weakening well into May.
The Railroad Commission of Texas, which regulates the oil-and-gas industry in the state, failed to reach agreement in a meeting on Tuesday to discuss a potential cut of 20% in Texas oil output, or about 1 million barrels a day.
It is expected to consider the matter again at a meeting next Tuesday, April 21.
Meanwhile, gold futures gave up earlier gains to end lower on Thursday, pressured as the greenback strengthened in the wake of the surge in weekly US jobless claims.
Comex gold for June delivery fell by $US8.50, or 0.5%, to settle at $US1,731.70 an ounce after touching an earlier high of $US1,768. That was the second daily loss in a row after Wednesday’s 1.6% fall ended four sessions of gains.
Comex May contract for silver picked up 11.7 cents, or nearly 0.8%, at $US15.622 an ounce, after sinking 3.9% the day before.
May copper shed 0.2% to settle at $US2.291 a pound.
And global iron ore prices weakened on Thursday, dipping $US1.49 or close to 2% to end at $US85.37 a tonne for 62% Fe fines delivered to northern China.
