(Kitco News) - Gold prices continue to hold support above $4,000 an ounce; however, according to some analysts, a relatively steady labor market could continue to put pressure on the precious metal.
Initial claims for state unemployment benefits came in at a seasonally adjusted 194,000 for the week ending October 24, the Labor Department announced Thursday. The data was slightly better than expected, as consensus estimates had called for a rise to 198,000.
This marks the sixth consecutive week that jobless claims have remained below the 200,000 level, the longest streak since January 2023.
The gold market has struggled to attract buying interest since late Wednesday, after the Federal Reserve left interest rates unchanged but signaled that it remains focused on bringing inflation back to its 2% target.
Analysts have said that the relatively healthy labor market gives the Federal Reserve room to raise interest rates in December. Spot gold last traded at $4,024.30 an ounce, down 1% on the day.
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 196,750, following the previous week’s revised 198,000 level.
Not only are American workers holding on to their jobs, but the unemployed are also getting back into the workforce faster.
Continuing jobless claims, which represent the number of people already receiving benefits, came in at 1.701 million during the week ending Oct. 17, a decline of 21,000 from the previous week.
