Make Kitco Your Homepage

Gold price retreats from new record high of $2,076 as U.S. weekly jobless claims drop more than expected

Kitco News

Editor's Note: Get caught up in minutes with our speedy summary of today's must-read news stories and expert opinions that moved the precious metals and financial markets. Sign up here!

(Kitco News) The initial weekly jobless claims decreased by 249,000 to 1.186 million in the week to Saturday, beating market expectations.

Economists' consensus called for initial claims to come in at 1.415 million following the revised level of 1.435 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 1,337,750, from last week’s revised average of 1,368,750, the U.S. Labor Department said on Thursday.

Continuing jobless claims, which represent the number of people already receiving benefits, were at 16,107,000 during the week ending July 25, down by 844,000 from the previous week’s revised level of 16,951,000. The four-week moving average dropped to 16,628,250.

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

Gold prices took a step back after the release, retreating from a new record high of $2,076.70. December Comex gold futures were last trading at $2,067.30, up 0.83% on the day. 

All eyes are now on the U.S. nonfarm payrolls report, which is scheduled for release Friday morning. Market consensus projects to see the economy adding 1.6 million jobs in July and the unemployment rate dropping to 10.5%.

Live 24 hours gold chart [Kitco Inc.]

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.