U.S. weekly jobless claims drop to 232,000, gold price near six-week lows

(Kitco News) The initial weekly jobless claims dropped by 5,000 to 232,000 in the week to Saturday, slightly surprising the markets with a contraction.

Economists’ consensus calls projected for initial claims to come in at 248,000 following the revised level of 237,000 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 – decreased to 241,500. Last week’s four-week moving average was revised down to 245,500, the U.S. Labor Department said on Thursday.

Continuing jobless claims, which represent the number of people already receiving benefits, were at 1,438,000 during the week ending August 20, an increase of 26,000 from the previous week’s revised level of 1,412,000.
The four-week moving average rose to 1,428,500, an increase of 4,500. And the previous week’s four-week moving average was revised down by 750 to 1,424,000.

Traders watch the jobless claims data very closely to gauge its impact on the Federal Reserve’s employment side of the monetary policy mandate.

Gold plunged following the data release. December Comex gold futures were last near six-week lows, trading at $1,706.90, down 1.12% on the day.