Make Kitco Your Homepage

Gold Builds On Gains After U.S. Jobless Claims Rise 7,000

Kitco News

Editor's Note: Updating earlier story with more details from report.

(Kitco News) - Gold extended early gains after Labor Department data Thursday showed that initial weekly U.S. jobless claims rose by 7,000 to a seasonally adjusted 214,000 in the week to Saturday.

Consensus expectations compiled by various news organizations had called for initial claims to be around 205,000 to 207,000. The government left the week’s tally unrevised at the previously reported 207,000.

Gold came into the New York trading session with a stronger tone after the sell-off in global stocks Wednesday and so far Thursday, analysts said. Comex December gold was trading at $1,207.90 an ounce about four minutes before reports on jobless claims and the Consumer Price Index. As of 8:36 a.m. EDT, the contract was at $1,211.10 an ounce, a gain for the day of $17.70.

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 up by 2,500 claims to 209,500.

Continuing jobless claims, the number of people already receiving benefits and reported with a one-week delay, increased by to a seasonally adjusted 4,000 to 1,660,000 during the week ending Sept. 29, the government said.

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.

Precious Metal Charts

Follow Kitco News