The Federal Reserve's interest rate cuts have repeatedly failed, and the dollar has risen and gold has plummeted by nearly $90!

foreign exchange documentary platformThe dollar rose 0.1 percent to close at 105.03 on Thursday, a fourth straight session of gains, after data showed U.S. business activity accelerated in May to its highest level in more than two years, suggesting economic growth picked up halfway through the second quarter.

Gold prices continued their decline on Thursday, hitting a minimum of $2326.90/ounce, a new low since May 9, closing at $2328.35/ounce, down more than $90 in the past two trading days. The US initial jobless claims data showed strong performance. Investors are worried about the timing of US interest rate cuts and the strong performance of US corporate activity. However, Daniel Ghali, commodity strategist at TD Securities, said that the rise in the dollar and the weakening prospect of US interest rate cuts have catalyzed a round of gold profit taking, but the downside is limited.

While the current policy response will "involve maintaining" the benchmark policy rate range unchanged at current levels, the latest minutes also reflect discussions about possible further increases in borrowing costs.

"Investors who are concerned about the outlook for the Fed are not actually bullish on gold," Mr. Ghali said. "They missed the rally and thus don't have as much gold to sell. So while we see a correction in gold prices at current levels, it is relatively small."

This trading day, we will continue to follow the speeches of Federal Reserve officials, and pay attention to the final value of the University of Michigan Consumer Confidence Index in May and news related to the geopolitical situation.

The US labor market remains strong

The number of initial jobless claims in the United States fell last week, suggesting that the underlying strength of the labor market should continue to support the economy.

Initial jobless claims fell for a second week in a row, reversing most of the increase at the start of the month, when they hit their highest level since late August, according to data released by the Labor Department on Thursday. The Federal Reserve's sharp interest rate hikes in 2022 and 2023 have led to slower job growth, but layoffs remain small.

"Initial jobless claims are down from the week before, so the acceleration that some had feared is not happening," said Robert Frick, corporate economist at Navy Federal Credit Union. "The labour market is still strong and if jobless claims are the canary in the coal mine, it's not even coughing slightly."

Initial claims for state unemployment benefits fell 8,000 to a seasonally adjusted 215,000 in the week ending May 18. Acceptance economists had forecast 220,000. Claims fell significantly in California and Indiana.

Companies have struggled to retain workers in the wake of recruitment difficulties during and after the COVID-19 pandemic, a point underlined by a survey released Thursday by S & P Global showing that the pace of employment decline in factories and services slowed in May.

The preliminary reading for employment in the US purchasing managers' index climbed to 49.9 in May from 48.4 in April as manufacturing employment rebounded. However, service sector employment remained weak, partly because of a shortage of workers. A reading below 50 indicates a contraction in private sector employment.

Minutes of the Fed's April 30-May 1 policy meeting, released on Wednesday, showed officials believed that "supply and demand in the labour market generally continued to balance, albeit at a slower pace", but noted that market conditions "remained generally tight".

Last week's jobless benefits data came during the period the government surveyed employers for the non-farm payrolls portion of the May employment report, and claims rose slightly between the April and May survey weeks.

Jobless claims data next week could give more clues about the labor market, a measure of hiring. The U.S. added 175,000 jobs in April.

In the week ending May 11, the number of renewals increased by 8,000, to a seasonally adjusted 1.794 million. Historically, the number of renewals has been low.