Gold Near Fresh Six-Month Lows As U.S. Weekly Jobless Claims Fall By 3K
(Kitco News) - Gold prices were trading near fresh six-month lows after the 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 be around 220,000. The government revised the previous week’s figures by 3,000 from 218,000 to 221,000.
In an initial reaction to data, August Comex gold futures continued to trade under pressure, last seen trading at $1,266.60, down 0.62% on the day.
Prior to the data release, gold prices were driven down largely by higher U.S. dollar, according to Kitco’s senior technical analyst Jim Wyckoff.
“An appreciating U.S. dollar on the foreign exchange market continues to hamstring the precious metals market bulls,” Wyckoff said in his AM Roundup. “The U.S. dollar index [was] solidly higher and hitting another 11-month high. The strong greenback is a major bearish weight.”
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 4,000 to 221,000 from the last week’s revised average.
Continuing jobless claims, the number of people already receiving benefits and reported with a one-week delay, was up by 22,000 from the previous week’s revised level, standing at 1,723,000 during the week ending June 9, the report said. The four-week moving average decreased by 4,750 to 1,722,500.
Traders monitor jobs data closely to gauge how aggressively the U.S. Federal Open Market Committee might alter monetary policy.