(Kitco News) - The gold market continues to struggle to find its footing, and prices could remain under pressure following positive U.S. labor market data, as the number of Americans applying for first-time unemployment benefits increased less than expected.
Initial claims for state unemployment benefits rose by 8,000 to a seasonally adjusted total of 208,000 for the week ending Jan. 3, the Labor Department announced on Thursday. The increase was slightly lower than expected, as consensus estimates looked for reading of 213,000 claims. The previous week’s figure was revised higher to 200,000.
However, the gold market has shown little reaction to economic data this week, as traders continue to take profits following a strong start to the new year. Spot gold last traded at $4,429.10 an ounce, down 0.59% 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 flattens week-to-week volatility – dropped to 211,750 following the previous week's average of 217,500, and against expectations for 219,000.
“This is the lowest level for this average since April 27, 2024 when it was 210,250,” the report said.
Continuing jobless claims, which represent the number of people already receiving benefits, were at 1.914 million during the week ending December 27, higher than the previous week’s revised 1.858 million level and the 1.900 million expected.
