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Gold price holds above $1,870 as U.S. weekly jobless claims worse-than-expected

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(Kitco News) The initial weekly jobless claims rose by 109,000 to 1.416 million in the week to Saturday, disappointing market expectations.

Economists’ consensus called for initial claims to come in at 1.3 million following the revised level of 1.307 million reported in the previous week.

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 – declined to 1,360,250, from last week’s revised average of 1,376,750, the U.S. Labor Department said on Thursday.

Continuing jobless claims, which represent the number of people already receiving benefits, were at 16,197,000 during the week ending July 11, down by 1,107,000 from the previous week’s revised level of 17,304,000. The four-week moving average dropped to 17,505,250.

Traders monitor jobs data closely to gauge how aggressively the U.S. Federal Open Market Committee alters monetary policy. 

Gold prices edged up, eyeing record high levels, with August Comex gold futures last trading at $1,876.30, up 0.60% on the day. 

The yellow metal’s all-time high of $1,920.70 scored in 2011 is now within reach, said Kitco’s senior market analyst Jim Wyckoff. 

“Safe-haven demand, technical buying, a weaker U.S. dollar index, rising crude oil prices, and increasing consumer demand from China and possibly India are all fueling the bull runs in the two precious metals markets,” Wyckoff said Thursday. 

Live 24 hours gold chart [Kitco Inc.]

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