Gold price holding steady as U.S. weekly jobless claims fall to new pandemic low
(Kitco News) - The gold market is holding steady and continues to test resistance just below $1,800 an ounce even as the U.S. labor market seeing significant improvement as fewer Americans than expected apply for first-time unemployment benefits.
Thursday the U.S. Labor Department said that weekly jobless claims fell sharply by 29,000 to 348,000, down from the previous week’s unrevised estimate of 377,000 claims.
“This is the lowest level for initial claims since March 14, 2020 when it was 256,000,” the report said
The latest labor market data was better than expected as consensus forecasts looking for claims to rise to 362,000.
The latest employment data is not having much impact on the gold market. June gold futures last traded at $1,792.20 an ounce, up 0.42% 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 – fell to 377,750 down by 19,000 claims from the previous week.
“This is the lowest level for this average since March 14, 2020 when it was 225,500,” the report said.
Continuing jobless claims, which represent the number of people already receiving benefits, were at 2.82 million during the week ending Aug. 7, down by 79,000 from the previous week’s revised level.
“This is the lowest level for insured unemployment since March 14, 2020 when it was 1,770,000,” the report said.
According to some economists, the continued drop in weekly jobless claims could prompt the Federal Reserve to announce a reduction in its bond purchase program before the end of the year.