Gold prices holding below $1,900 as U.S. weekly jobless claims climb to 196K

NEW YORK (Feb 9) The gold market remains in a relatively stable holding pattern below $1,900 an ounce even as slightly more American workers than expected applied for first-time unemployment benefits.

Thursday, the U.S. Labor Department said that weekly jobless claims increased by 13,000 to 196,000, up from the previous week's unrevised estimate of 183,000 claims.

The latest labor market data missed expectations. According to consensus forecasts, economists were expecting to see jobless claims rise at a slower pace to 191,000.

The gold market is not seeing much reaction to the latest labor market data. April gold futures last traded at $1.892.40 an ounce, up 0.08% 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 – fell slightly to 189,250, down by 2,500 claims from the previous week's revised average.

Continuing jobless claims, which represent the number of people already receiving benefits, were at 1.688 million during the week ending Jan. 28, rising by 38,000 from the previous week's revised level.

Although weekly jobless numbers rose more than expected last week, the data shows claims are holding near their lowest levels since April 2022 and have been below the 200,000 for the last four weeks.

Economists are paying close attention to the U.S. labor market because it is a major factor that could determine the path of the Federal Reserve’s monetary policy. Federal Reserve Chair Jerome Powell said that the central bank needs to see softness in the labor market before it can loose its aggressive monetary policy stance.

So far, the U.S. labor market has defied all expectation of an impending slowing down. Last week the Bureau of Labor Statistics said that 517,000 jobs were created last month.

Kitco