(Kitco News) - Investors and economists hoping for signs that the Federal Reserve will begin cutting rates in September may be disappointed by the latest labor market data, as the number of Americans applying for first-time unemployment benefits remains relatively stable.
Initial claims for state unemployment benefits came in at a seasonally adjusted 218,000 for the week ending July 26, the Labor Department announced on Thursday. The figure was better than expected, with consensus estimates forecasting 222,000 claims. The previous week's figure was unrevised at 217,000.
U.S. economic data is having little impact on gold prices, which continue to hold support above $3,308.10 an ounce, up 1% on the day.
Meanwhile, the four-week moving average for new claims—often considered a more reliable measure of the labor market, as it smooths out week-to-week volatility—came in at 221,000, down from the previous week's unrevised average of 224,500.
Continuing jobless claims, which reflect the number of people already receiving benefits, stood at 1.946 million for the week ending July 19, unchanged from the previous week’s revised level.
Economists are closely monitoring the U.S. labor market, as it remains a key factor in the Federal Reserve’s monetary policy decisions. On Wednesday, Federal Reserve Chair Jerome Powell reiterated the central bank’s position that it is in no rush to cut interest rates, given the labor market’s relative strength.
