(Kitco News) - The U.S. labor market continues to fire on all cylinders as the number of Americans applying for first-time unemployment benefits remains stable at lower levels.
Initial claims for state unemployment benefits fell by 16,000 to a seasonally adjusted 207,000 for the week ending Jan. 25, the Labor Department announced on Thursday. The number was below expectations, as consensus estimates forecasted a reading of 224,000 claims. The previous week’s figure was unrevised at 223,000.
The gold market is not seeing much reaction to the solid employment data as it trades near critical long-term resistance levels. Spot gold last traded at $2,784.10 an ounce, up nearly 1% 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 – came in at 212,500, relatively stable from last week’s unrevised average of 213,500.
At the same time, already unemployed workers are starting to get back into the workforce after hitting a three-year high. Continuing jobless claims, which represent the number of people already receiving benefits, were at 1.858 million during the week ending Jan 18, down from 1.9 million last week.
According to some analysts, the resilience in the U.S. labor market could add more volatility to gold as it forces the Federal Reserve to narrow its easing path. Wednesday Federal Reserve Chair Jerome Powell said that the central bank is in no rush to cut rates further due to muted inflation pressures and a healthy labor market.
