(Kitco News) - The gold market is holding steady following the release of worse-than-expected labor market data after the number of Americans filing new claims for unemployment benefits increased more than expected last week.
Initial claims for state unemployment benefits rose to a seasonally adjusted 229,000 for the week ending June 1, the Labor Department announced on Thursday. According to consensus estimates, economists forecasted a reading of 220,000 claims. The previous week’s figure was revised upward by 2,000 to 221,000.
The gold market is seeing a muted reaction to the labor market data, with spot gold last trading at $2,372.44 per ounce, up 0.17% on the day.
Meanwhile, 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 slightly to 222,250, down from the previous week's upwardly revised average of 223,000.
Continuing jobless claims, which represent the number of people already receiving benefits, were at 1.792 million during the week ending May 25, against expectations for a 1.790 reading and the previous week’s revised 1.790 million level.
Markets are paying close attention to the labor market, which remains a critical factor for the Federal Reserve’s monetary policy. Economists note that a tight labor market will increase wage inflation, adding to broadly higher consumer prices.
