(Kitco News) - With geopolitical tensions easing, gold prices could be sensitive to better-than-expected labor market data, as weekly jobless claims continue to show resilience in the economy.
Initial claims for state unemployment benefits increased by 1,000 to a seasonally adjusted 200,000 for the week ended Jan. 17, the Labor Department said Thursday. The data significantly beat expectations; according to consensus estimates, economists had forecast a rise to 209,000 claims. The previous week’s claims were revised slightly higher to 199,000.
The gold market showed little movement in its initial reaction, managing to hold support above $4,800 an ounce. Spot gold last traded at $4,819.60 an ounce, down 0.24% on the day.
The four-week moving average for new claims—often viewed as a more reliable measure of the labor market because it smooths out week-to-week volatility—fell to 201,500, down 3,750 claims from the previous week’s revised average.
“This is the lowest level for this average since January 13, 2024, when it was 200,000,” the report said.
At the same time, laid-off workers continue to find a more favorable job-hunting environment. The report said continuing claims, published with a one-week delay, fell to 1.848 million, down 26,000 claims from the previous week’s revised level of 1.875 million.
According to some economists, the latest labor market data gives the Federal Reserve room to maintain its current monetary policy for the foreseeable future, as inflation pressures remain stubbornly elevated. In the current environment, markets are not expecting the U.S. central bank to cut interest rates until at least June.
