Gold Edges Down As U.S. Weekly Jobless Claims Drop By 19K
(Kitco News) - Gold prices were slightly down on the day as the U.S. Labor Department showed that the initial weekly jobless claims declined to 234,000 in the week to Saturday.
Market consensus called for initial claims to fall to 221,000 from the unrevised level of 253,000 reported in the previous week.
The April Comex gold futures started to edge down following the release of the data, with prices trading at $1,311.80, down 0.18% on the day.
Gold prices stalled earlier this morning as rallying U.S. dollar kept the precious metals buyers on the sidelines, said Kitco’s senior technical analyst Jim Wyckoff.
“The U.S. dollar has appreciated this week following a strong U.S. jobs report issued last Friday, which contrasts with some downbeat economic data coming from other major economies recently,” Wyckoff said.
The four-week moving average for new claims – often viewed as a more reliable measure of the labor market since it flattens week-to-week volatility – rose to 224,750 from last week’s unrevised average of 220,250.
Continuing jobless claims, which represent the number of people already receiving benefits, were at 1,736,000 during the week ending January 26, down by 42,000 from the previous week’s revised level of 1,778,000, the report said. The four-week moving average increased by 4,250 to 1,741,250.
Traders monitor jobs data closely to gauge how aggressively the U.S. Federal Open Market Committee alters monetary policy.