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Gold Continues To Trade Near Two-Week Highs As U.S. Weekly Jobless Claims Fall By 4K

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Gold Continues To Trade Near Two-Week Highs As U.S. Weekly Jobless Claims Fall By 4K

(Kitco News) - U.S. initial weekly jobless claims fell to 218,000 in the week to Saturday, the Labor Department said. The total was better than expected.

Market consensus called for initial claims to climb to around 223,000. The government did not revise the prior week’s figures.

In an initial reaction to the weekly jobless claims data, August Comex gold futures remained near two-week highs, last seen trading at $1,311.60, up 0.79% on the day. Prior to the data release, gold prices were trading at session highs on weaker U.S. dollar and trade worries.

Bargain hunting in the cash market and short covering in the futures market are featured in both precious metals,” Kitco’s senior technical analyst Jim Wyckoff said in his AM Roundup.

Meanwhile, the four-week moving average for new claims – often viewed as a more reliable measure of the labor market since it smoothens out week-to-week volatility – dropped by 1,250 to 224,250 from the last week’s unrevised average of 225,500.

Continuing jobless claims, the number of people already receiving benefits and reported with a one-week delay, was down by 49,000 from the previous week’s revised level, standing at 1,697,000 during the week ending June 2 and marking the lowest level since 1973, the report said. The four-week moving average decreased by 3,750 to 1,726,250.

Traders monitor jobs data closely to gauge how aggressively the U.S. Federal Open Market Committee alters monetary policy.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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