Gold is trading slightly bullish early on Thursday, making some gains ahead of the release of the weekly jobless claims figures from the US later today even as markets await details on more stimulus measures from the US. At the time of writing, GOLD is trading at a little above $1,712.

Markets are trading with a risk-off sentiment a day after Fed chair Powell warned that the US could experience the worst ever recession since WWII as a result of the coronavirus pandemic. This statement sent equity markets lower and increased the safe haven appeal of gold among traders.

Meanwhile, gold prices also received additional support over rising expectations for the US government to unveil more stimulus to prop up the economy amid the ongoing crisis. Governors across party lines have urged the government to release more financial aid to cities and states impacted by the pandemic and resulting shutdowns.

The yellow metal also received a boost after US PPI fell to an over four-year low during April, another key indicator highlighting the extent of economic damage the pandemic has caused. US PPI registered a 1.3% decline during April after falling by 0.2% in the previous month, far more severe than the 0.5% decline forecast by economists.