(Kitco News) - The gold market is holding recent gains and remains within striking distance of its this week’s all-time highs as the U.S. labor market sees a significant drop in momentum.
The number of Americans filing new claims for unemployment benefits uumped sharply higher, pointing to growing weakness labor market.
Initial claims for state unemployment benefits rose by 20,000 to a seasonally adjusted 243,000 for the week ended July 13 the Labor Department said on Thursday. According to consensus estimates, economists forecasted a more muted increase to 229,000 claims. Last week’s data was revised up to 223,000.
Unemployment claims have risen to their highest level since early-August 2023.
The gold market is not seeing much reaction to the disappointing labor market data as it continues to hover in rarified air near all-time highs. August gold futures last traded at $2,470.100 an ounce, up 0.41% 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 234,750, an increase of 1,000 claims from the previous week's revised average of 233,750.
Not only are American workers starting to lose their jobs, but it is becoming increasingly more difficult to find new employment.
Continuing jobless claims, which represent the number of people already receiving benefits, increased by 20,000 to 1.867 million during the week ending July 6.
“This is the highest level for insured unemployment since November 27, 2021 when it was 1,878,000,” the report said.
