Better-Than-Expected U.S. Weekly Jobless Claims Keep Gold Prices Near Daily Lows
(Kitco News) - Gold prices edged down after the U.S. Labor Department showed that the initial weekly jobless claims declined by 8,000 to 209,000 in the week to Saturday.
The market consensus called for initial claims to come in at the 215,000 level following a downwardly revised 217,000 reported in the previous week.
The December Comex gold futures edged down following the release of the data with prices trading at $1,505.60, down 0.92% on the day.
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 212,250 from last week’s revised average of 212,000.
Continuing jobless claims, which represent the number of people already receiving benefits, were at 1,684,000 during the week ending July 27, down by 15,000 from the previous week’s unrevised level of 1,699,000, the report said. The four-week moving average dropped by 11,000 to 1,687,250.
Traders monitor jobs data closely to gauge how aggressively the U.S. Federal Open Market Committee alters monetary policy.
Earlier in the session, gold saw a normal corrective pullback after hitting fresh six-year highs of above $1,500 an ounce on Wednesday, said Kitco’s senior technical analyst Jim Wyckoff.
“Gold prices are lower in early U.S. trading Thursday, on some profit taking from the shorter-term futures traders and on a normal corrective pullback and consolidation after prices hit a six-year high Wednesday. The global marketplace is calmer Thursday, following the keener anxiety seen among traders and investors on Wednesday,” Wyckoff said on Thursday.