Gold Price Near Daily Lows as U.S. Weekly Jobless Claims Surprise on the Upside
(Kitco News) - The initial weekly jobless claims dropped to 209,000 in the week to Saturday, beating expectations, the U.S. Labor Department said.
Market consensus called for initial claims to come in at 216,000 following a downwardly revised level of 221,000 reported in the previous week.
Gold was down prior to the release with prices edging slightly further down after the weekly figures were published. December Comex gold futures last traded $1,504.20 an ounce, down 0.76% 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 214,500 from last week’s revised average of 214,000.
Continuing jobless claims, which represent the number of people already receiving benefits, were at 1,674,000 during the week ending August 10, down by 54,000 from the previous week’s revised level of 1,728,000, the report said. The four-week moving average was down by 750 at 1,697,000.
Traders monitor jobs data closely to gauge how aggressively the U.S. Federal Open Market Committee alters monetary policy.
The focus this week remains on the Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole Symposium on Friday, said Kitco’s senior technical analyst Jim Wyckoff.
“Technically, the gold bulls have the solid overall near-term technical advantage … First resistance is seen at today’s high of $1,518.40 and then at this week’s high of $1,523.60. First support is seen at this week’s low of $1,503.00 and then at $1,500.00,” Wyckoff wrote on Thursday.