(Kitco News) - Gold prices are trading right around the $2,500 per ounce level following the release of worse-than-expected labor market data after the number of Americans filing new claims for unemployment benefits last week was higher than forecasted.
Initial claims for state unemployment benefits rose to a seasonally adjusted 232,000 for the week ending August 17, the Labor Department announced on Thursday. The number was higher than expectations, as consensus estimates forecasted a reading of 230,000 claims. The previous week’s figure was revised upward by 1,000 to 228,000.
The gold market is continuing to hover around the $2,500 level following the labor market data release. Spot gold last traded at $2,500.86 per ounce, down 0.45% 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 to 236,000 against expectations for a 245,000 print, and slightly lower than the previous week's average of 236,750.
Continuing jobless claims, which represent the number of people already receiving benefits, were at 1.863 million during the week ending August 10, against expectations for a 1.870 million reading and the previous week’s downwardly revised 1.859 million level.
Markets are paying close attention to the labor market, which remains a critical factor for the Federal Reserve’s monetary policy. Economists are fully pricing in a September rate cut, but the size is still in question.
