(Kitco News) - The U.S. labor market is showing early signs of stabilizing as the number of job openings increased more than expected in January. Better-than-expected jobs data is creating some selling pressure in gold as the precious metal tries to hold support above $5,100 an ounce.
January job openings—a measure of labor demand—rose to 6.95 million, up from December’s revised reading of 6.55 million, according to the Labor Department’s monthly Job Openings and Labor Turnover Survey (JOLTS).
The data was better than expected, as economists had been looking for a more modest increase to 6.76 million.
Although job openings increased at the start of the year, they remain near their lowest levels since April 2021.
The gold market continues to see some volatility as it reacts to competing economic headlines. Prices hit session highs earlier in the day following data that showed slowing economic growth and persistently elevated inflation.
However, better-than-expected labor market data is taking some momentum away from the precious metal. Spot gold last traded at $5,100.30 an ounce, up 0.24% on the day.
According to some analysts, despite concerns about economic growth, a relatively healthy labor market could keep the Federal Reserve from cutting interest rates aggressively this year, as inflation pressures are expected to pick up.
Looking at the components of the report, the number of hires was roughly unchanged at 5.3 million, with the hiring rate holding at 3.3%.
Within separations, quits came in at 3.1 million, while layoffs and discharges totaled 1.6 million, both little changed.
