Gold prices up amid rising US unemployment claims

Gold prices rose in Asia on Friday morning, carrying over its gains of around 2% from the previous session.

Gold futures gained 0.07% at $1,726.95 at 12:01 PM ET (5:01 AM GMT), reclaiming lost ground from a drop of 0.2% earlier in the session.

Investors flocked to the yellow metal after the U.S. on Thursday reported that 3.169 million Americans had claimed unemployment in early May. The data adds to more than 31 million people unemployed in the world’s largest economy since late March, with an unemployment rate rising to 16%.

Gold rallied alongside stocks even as the two are often observed to move in opposite directions.

Investors are also eyeing the first-ever negative U.S. interest rates. 

While the U.S. Federal Reserve questioned the adequacy of the decision, the central bank may be forced to introduce negative rates should the economy decline any further.