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(Kitco News) -
The U.S. labor market showed surprising weakness last week as the number of workers applying for first-time unemployment benefits rose well beyond market expectations.
The gold market rallied following the worse-than-expected employment data, which was released at the same time as July CPI data. Spot gold rose from $1,921.88 an ounce just before the release to a session high of $1929.31 in the minutes afterward. Spot gold last traded at $1,925.86 an ounce, up 0.61% on the day.
Thursday, the U.S. Labor Department said that weekly jobless claims rose by 21,000 to 248,000 during the week ending Aug. 5, up from the previous week's unrevised estimate of 227,000 claims.
The latest labor market data was worse than expected. According to consensus forecasts, economists were expecting to see jobless claims rise only slightly to 230,000.
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 – rose to 231,000, an increase of 2,750 claims from the previous week's unrevised average of 228,250.
Continuing jobless claims, which represent the number of people already receiving benefits, were at 1.684 million during the week ending July 29, falling by 8,000 from the previous week's revised level.
