(Kitco News) - The U.S. labor market is losing some momentum as the number of American workers applying for first-time unemployment benefits has jumped to a two-month high; however, the disappointing data is not having any impact on gold, as prices remain under pressure.
Initial claims for state unemployment benefits increased by 22,000 to a seasonally adjusted 242,000 for the week ending Feb. 22, the Labor Department announced on Thursday. The number significantly missed expectations, as consensus estimates forecasted a reading of 222,000 claims. The previous week’s figure was revised up to 219,000.
The gold market is not seeing much reaction to the weak employment data as it trades below $2,900 an ounce. Spot gold last traded at $2,884.10 an ounce, down 1% on the day.
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 – jumped higher to 224,000, up sharply from last week’s average of 215,500.
At the same time, already unemployed workers continue to get back into the workforce. Continuing jobless claims, which represent the number of people already receiving benefits, were at 1.862 million during the week ending Feb 15, down from last week’s revised data of 1.867 million claims.
The latest employment data will put some pressure on the Federal Reserve as it tries to balance rising inflation and a potentially cooling labor market.
