(Kitco News) - The gold market can’t catch a break as prices remain under significant technical selling pressure, even as the U.S. labor market continues to cool, with the number of jobs available dropping sharply.
December job openings—a measure of labor demand—fell to 6.54 million, down from November’s revised reading of 6.93 million, according to the Labor Department’s monthly Job Openings and Labor Turnover Survey (JOLTS) report.
The data was significantly weaker than expected, as economists had been looking for a rebound to 7.25 million. The number of available jobs in the U.S. labor market has dropped to its lowest level since November 2020.
The report also noted that the number of job openings declined by 966,000 over the year.
Despite the disappointing labor market data, the gold market continues to see robust selling pressure. Spot gold last traded at $4,826.70 an ounce, down more than 2% on the day.
Traditionally, weak labor market data should provide some support for the precious metal, as it supports further easing from the Federal Reserve. However, the U.S. central bank has been reluctant to ease interest rates as inflation has remained stubbornly elevated and the U.S. economy remains resilient, with a relatively healthy labor market. Economists note that further weakness in employment could prompt the Federal Reserve to cut rates sooner than expected.
Looking at the components of the report, the number of hires rose slightly to 5.3 million, with the hiring rate increasing to 3.3%.
Within separations, quits came in at 3.2 million, while layoffs and discharges totaled 1.8 million, both little changed.
The latest employment data was delayed due to a brief government shutdown.
