(Kitco News) - Renewed volatility in the U.S. labor market is not having much impact on the gold market, with prices holding close to $4,200 an ounce as the number of American workers applying for first-time unemployment benefits jumps more than expected.
Initial claims for state unemployment benefits came in at a seasonally adjusted 236,000 for the week ending in December, the Labor Department announced on Thursday. Claims increased by 44,000 from last week’s revised level of 192,000. The data were significantly weaker than expectations, as consensus estimates had forecast a reading of 220,000 claims.
Although the previous week showed jobless claims falling to a three-year low, many analysts were discounting the data, noting that the Thanksgiving holiday could have impacted the numbers.
However, the disappointing labor market data is having little impact on gold in its initial reaction. Spot gold last traded at $4,209.20 an ounce, down 0.43% on the day.
Meanwhile, the four-week moving average for new claims – often viewed as a more reliable measure of the labor market since it smooths week-to-week volatility – came in at 216,750, an increase from the previous week's unrevised average of 214,750.
Continuing jobless claims, which represent the number of people already receiving benefits, were at 1.838 million during the week ending November 29, down from the previous week’s revised claims of 1.937 million.
