John Hancock: Weekly Market Recap Week Ended May 23

Gold rebounds

The price of gold climbed nearly 6% for the week to around $3,360 per ounce as the precious metal recovered all of the ground lost in the previous week’s decline. The latest week’s result extended a year-to-date rally that recently pushed gold to a record high of more than $3,400.

Dollar’s decline

The U.S. dollar’s value relative to a basket of other major currencies fell to the lowest level in four weeks on Friday, but the greenback remained above a three-year low recorded on April 21. On a year-to-date basis, the dollar was down nearly 9% as of Friday.

Housing setback

U.S. sales of existing homes unexpectedly fell in April amid twin challenges from elevated mortgage rates and rising home prices. Although homebuying typically increases in the spring, the National Association of Realtors reported that sales fell 0.5% relative to the previous month. It was the slowest sales pace for the month of April since 2009.

Price check ahead

A report scheduled to be released on Friday could ease recent uncertainty over inflation’s trajectory. The Personal Consumption Expenditures Price Index is the U.S. Federal Reserve’s preferred gauge for tracking inflation. The most recent PCE inflation report showed inflation rising at an annual rate of 2.3% in March, down from 2.7% the previous month.

SOURCE: https://www.jhinvestments.com/weekly-market-recap#market-moving-news