(Kitco News) - The gold market continues to hover around $2,900 an ounce as the U.S. labor market stabilizes. The number of American workers applying for first-time benefits slightly exceeded expectations.
Initial claims for state unemployment benefits dropped by 7,000 to a seasonally adjusted 213,000 for the week ending Feb. 8, the Labor Department announced on Thursday. The number was slightly below expectations, as consensus estimates had forecast 217,000 claims. The previous week’s figure was also revised upward to 219,000.
The gold market is not seeing much reaction to the latest labor market data, as it remains near record highs. Spot gold last traded at $2,913.10 an ounce, up 0.32% on the day. Analysts note that the gold market continues to be driven by safe-haven demand as investors seek protection from rising geopolitical and economic uncertainty.
Meanwhile, the four-week moving average for new claims—often viewed as a more reliable measure of the labor market since it smooths out week-to-week volatility—fell slightly to 216,000, down from last week’s revised average of 217,000.
Continuing jobless claims, which represent the number of people already receiving benefits, stood at 1.850 million during the week ending February 1, down from the previous week’s unrevised level of 1.886 million.
Looking ahead, some commodity analysts have said that although gold’s broader rally is being driven by geopolitical uncertainty, prices could see short-term volatility as markets react to elevated bond yields and a stronger U.S. dollar.
The U.S. dollar remains well supported as the Federal Reserve has indicated that it is in no hurry to cut interest rates, given that inflation pressures remain elevated and the U.S. labor market remains healthy.
