(Kitco News) - The gold market continues to consolidate around $3,300 an ounce but remains unable to attract new safe-haven interest, even as the U.S. labor market shows signs of weakening, with the number of available jobs dropping more than expected.
March’s job openings—a measure of labor demand—fell to 7.19 million, down from February’s reading of 7.48 million, according to the Labor Department's monthly Job Openings and Labor Turnover Survey (JOLTS) report. The data was weaker than expected, as economists had forecast a relatively unchanged reading of 7.49 million.
The report noted that total job openings have declined by 901,000.
The gold market is showing little reaction to the latest economic data, with prices continuing to consolidate following a recent rally to an all-time high of $3,500 an ounce. Spot gold last traded at $3,307.50 an ounce, down 1% on the day.
Although gold has pulled back sharply from recent highs, analysts point to underlying strength in the market, as prices hold above what has now become a key support level.
According to some analysts, the disappointing employment data could provide momentum for gold, as it gives the Federal Reserve more room to cut interest rates in support of the slowing economy.
The report also said that in March, hires held steady at 5.4 million, while total separations were little changed at 5.1 million. Within separations, quits were unchanged at 3.3 million, and layoffs and discharges fell to 1.6 million.
