(Kitco News) – Declining momentum in the US labor market is creating further selling pressure on the US Dollar, which is pushing gold prices into neutral territory.
On Thursday, the US Labor Department said weekly jobless claims rose by 7,000 to 251,000, compared with the previous week’s unrevised estimate of 244,000 claims.
The latest labor market data missed expectations. According to consensus forecasts, economists had expected to see jobless claims fall to about 240,000. This is the third week that initial jobless claims have missed expectations. Claims have risen higher for seven straight weeks.
The gold market continues to move higher after disappointing employment data. August gold futures last traded at $1,701 an ounce, nearly neutral on the day.
The four-week moving average for new claims – often considered a more reliable measure of the labor market as it smooths out week-to-week volatility – rose to 240,500, up 4,500 claims from last week’s revised average.
While initial claims remain volatile, some economists are paying more attention to ongoing claims, which have been steadily falling in recent weeks.
Continuing jobless claims, which represent the number of people already receiving benefits, were 1.384 million during the week ended July 9, up 51,000 from the previous week’s revised level.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided. However, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation for any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for loss and/or damage arising from the use of this publication.
