(Kitco News) - A relatively stable U.S. labor market is having a limited impact on gold, as the price action is driven by momentum, with investors buying a two-day dip that tested support around $3,300 an ounce.
Initial claims for state unemployment benefits rose by 6,000 to a seasonally adjusted level of 222,000 for the week ending April 19, the Labor Department announced on Thursday. The number rose in line with expectations. Meanwhile, the previous week’s figure was revised to 216,000 claims.
While gold has dropped sharply from this week’s intra-day all-time high at $3,500 an ounce, the selling pressure has still been limited with the market holding a key support level. The precious metal is not seeing much of a reaction to the in-line employment data. Spot gold last traded at $3,342.40 an ounce, up 0.164% 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 – came in at 220,250; meanwhile, the previous week's revised average of 220,750.
The report also showed that laid-off workers continue to find it challenging to get back into the labor market. Continuing jobless claims, which represent the number of people already receiving benefits, remained relatively elevated at 1.841 million during the week ending April 14, down 37,000 from the previous week's revised level of 1,878,000.
