The gold market is trying to hold its ground near record highs as the U.S. labor market continues to stabilize as the number of Americans applying for first-time unemployment benefits.
Initial claims for state unemployment benefits rose by 5,000 to a seasonally adjusted 219,000 for the week ending February 15, the Labor Department announced on Thursday, up from last week’s revised level of 213,000. The data was in line with expectations.
The gold market is not seeing much reaction to the data as the market sees some profit-taking after hitting record highs overnight. Spot gold last traded at $2,938.40 an ounce up 0.18% on the day.
Meanwhile, 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 – came in at 215,250, down from last week’s revised average of 216,000.
Continuing jobless claims, which represent the number of people already receiving benefits, dropped to 1.869 million during the week ending February 8, down from the previous week’s revised level of 1.845 million.
The gold market could struggle in the near term as the labor market data remains relatively healthy. The Federal Reserve said that it is not in any rush to cut interest rates as inflation risks remain elevated and the labor market remains strong.
Source: Kitco
