(Kitco News) - The gold market continues to struggle even as the U.S. labor market weakens, with the number of job openings falling more than expected last month.
December job openings—a measure of labor demand—fell to 7.15 million, down from November’s reading of 7.23 million, according to the Labor Department’s monthly Job Openings and Labor Turnover Survey (JOLTS) report. The data were weaker than expected, as economists had been looking for open positions to rise to 7.61 million.
The number of jobs available has dropped to its lowest level since March 2021.
Meanwhile, the number and rate of hires were little changed at 5.1 million and 3.2%, respectively.
Within separations, quits came in at 3.2 million, while layoffs and discharges totaled 1.7 million, both of which were little changed.
The gold market is not seeing any significant reaction to the latest disappointing employment data. Earlier in the morning, private-sector payroll processor ADP reported weaker-than-expected job growth in December.
The gold market is seeing solid technical selling pressure after a strong start to the new year. Spot gold last traded at $4,440.80 an ounce, down more than 1% on the day.
Although gold prices are struggling on Wednesday, analysts note that prices and the current uptrend remain well supported as the U.S. labor market continues to weaken. Economists have said that further deterioration in the U.S. labor market will force the Federal Reserve to cut interest rates through 2026.
So far, the data have not impacted current market expectations. The CME FedWatch Tool shows markets pricing in a more than 80% chance that the U.S. central bank leaves interest rates unchanged at its monetary policy meeting later this month.
