Gold price ticks up as U.S. weekly jobless claims drop below 1 million
Editor's Note: The article was updated to reflect changes in prices.
(Kitco News) The initial weekly jobless claims dropped by 228,000 to 963,000 million in the week to Saturday, beating market expectations and falling below one million for the first time since the lockdowns began in March.
Economists' consensus called for initial claims to come in at 1.1 million following the revised level of 1.2 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 1,252,750, from last week’s revised average of 1,339,000, the U.S. Labor Department said on Thursday.
Continuing jobless claims, which represent the number of people already receiving benefits, were at 15,486,000 during the week ending August 1, down by 604,000 from the previous week’s revised level of 16,090,000. The four-week moving average dropped to 16,169,500.
Traders monitor jobs data closely to gauge how aggressively the U.S. Federal Open Market Committee alters monetary policy.
Gold prices edged up following the data, but were still down on the day. December Comex gold futures were last trading at $1,938.10 an ounce, down 0.56% on the day. Earlier in the session, gold rose all the way back up to $1,952.80 but then fell back down to the daily low of $1,923.