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Gold Prices Remain Under Pressure As Weekly Jobless Claims Remain Near Historic Lows

Kitco News

(Kitco News) - Gold prices continue to hover just above their recent 12-month lows as the labor market maintains its momentum.

Thursday, Initial weekly U.S. jobless claims remained near their historic lows, with a seasonally adjusted data rising to 218,000 in the week to Saturday, the Labor Department reported.

Consensus forecasts compiled by various news organizations had called for initial claims to be around 220,000. The government left the prior week’s tally unrevised at 217,000.

The gold market has been struggling to attract investor interest as it continues to hover at the bottom end of its current trading range. December gold futures last traded at $1,224 an ounce, down 0.30% on the day.

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 3,500 claims to 214,500.

Continuing jobless claims, the number of people already receiving benefits and reported with a one-week delay, decreased by 23,000 to a seasonally adjusted 1.72 million during the week ending July 21 the government said.

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

The Federal Reserve highlighted the strength in the labor market as it left interest rates unchanged following Wednesday’s monetary policy meeting.

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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