(Kitco News) - Gold prices are holding steady following the release of worse-than-expected labor market data after the number of Americans filing new claims for unemployment benefits was higher than forecasted last week.
Initial claims for state unemployment benefits fell to a seasonally adjusted 238,000 for the week ending June 15, the Labor Department announced on Thursday. The number was higher than expectations, as consensus estimates forecasted a reading of 235,000 claims. The previous week’s figure was revised up by 1,000 to 243,000.
The gold market is holding steady following the release of the labor market data, which came out at the same time as the May housing starts report and the Philly Fed manufacturing index. Spot gold last traded at $2,338.95 per ounce, up 0.47% 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 – rose to 232,750, up from the previous week's revised average of 227,250.
Continuing jobless claims, which represent the number of people already receiving benefits, were at 1.828 million during the week ending June 8, against expectations for a 1.810 reading and the previous week’s revised 1.813 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.
