(Kitco News) - The gold market is seeing solid gains above $3,100 an ounce, but prices are off their overnight highs even as the U.S. labor market loses some momentum, with the number of jobs available falling more than expected.
February’s job openings, a measure of labor demand, dropped to 7.57 million compared to January’s reading of 7.76 million, according to the Labor Department's monthly Job Openings and Labor Turnover Survey (JOLTS) report. The report was weaker than expected, as economists were forecasting an increase to 7.69 million.
The gold market is not seeing much of a reaction to the latest economic data as technical momentum continues to dominate the price action. The market is seeing some modest profit-taking after hitting an overnight high of $3,149 an ounce. Spot gold last traded at $3,134.20 an ounce, up 0.34% on the day.
Analysts note that the weak jobs data should provide some support for gold at these elevated prices, as it gives the Federal Reserve room to cut interest rates later this year. The Federal Reserve has maintained a neutral stance so far this year as inflation remains elevated and the U.S. labor market remains relatively healthy.
The report said that in February, hires and total separations held relatively steady at 5.4 million and 5.3 million, respectively. Within separations, quits came in at 3.2 million, and layoffs and discharges were 1.8 million, both little changed.
