Gold Prices Ignore 2K Drop In Weekly Jobless Claims
(Kitco News) - Gold prices are under pressure but are seeing little reaction to stronger than expected labor market data.
Initial weekly U.S. jobless claims remain near a 49-year low, with a seasonally adjusted data falling by 2,000 to 210,000 claims to the week to Saturday, the Labor Department reported.
Consensus forecasts compiled by various news organizations had called for initial claims to be around 215,000. The government left the the prior week’s tally unchanged at 212,000 claims.
The gold market is seeing some profit taking Thursday droping below critical support at $1,200 an ounce as the U.S. dollar attracts some bids. However, the data is not having a major impact on the yellow metal as prices are relatively unchanged in initial reaction. December gold futures last traded at $1,198.40 an ounce, down 0.41% 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 – was down by 1,750 claims to 213,750.
Continuing jobless claims, the number of people already receiving benefits and reported with a one-week delay, decreased by 2,000 to a seasonally adjusted 1.727 million during the week ending August 11 the government said.
Traders monitor jobs data closely to gauge how aggressively the U.S. Federal Open Market Committee alters monetary policy. U.S. economic data not having much impact on markets this week as traders and investors are focused on the global central bankers retreat in Jackson Hole Wyoming, which kicks off today.
Friday Fed Chair Jerome Powell will talk about monetary policy, but some economists are not expecting him to add anything new to the current outlook. Wednesday the minutes of the last monetary policy meeting showed that the committee expected to raise interest rates in September.