(Kitco News) - The gold market is seeing some renewed momentum as the U.S. labor market continues to weaken as American workers applied for first-time unemployment benefits after a faster pace than expected last week.
Thursday, the U.S. Labor Department said that weekly jobless claims increased by 13,000 to 215,000 during the week ending Feb. 24, up from the previous week's revised estimate of 201,000 claims.
The number was higher than the consensus forecast, as economists were expecting to see jobless claims hold relatively steady at around 209,000.
The gold market is seeing some solid buying in its initial reaction to the disappointing weekly labor data. Spot gold prices last traded at $2,050.40 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 212,500, down from the previous week's revised average of 215,500.
The report also noted that workers already receiving benefits continue to find it difficult to find new jobs.
Continuing jobless claims, which represent the number of people already receiving benefits, increased to 1.905 million during the week ending Feb. 17, up by 45,000 claims above the previous week's revised level of 1.862 million.
Market analysts continue to pay close attention to labor market data as growing slack could force the Federal Reserve to cut interest rates. Currently, markets see a 60% chance of a rate cut in June.
