Disappointing US labor market data continues to support higher gold prices

WASHINGTON (September 11) The U.S. labor market can’t find any solid footing and is hit with more bad news as the number of American workers applying for first-time benefits rose more than expected last week.

Initial claims for state unemployment benefits jumped by 27,000, rising to a seasonally adjusted level of 263,000 for the week ending Sept. 6 the Labor Department announced on Thursday.

“This is the highest level for initial claims since October 23, 2021, when it was 268,000,” the report said.

The number was worse than expectations, as consensus estimates forecasted a relatively unchanged reading of 235,000 claims. The previous week’s figure was revised down to 236,000.

The disappointing labor market data is providing some support for gold as the precious metal has managed to bounce off its session lows. Spot gold last traded at $3,641 an ounce, relatively unchanged on the day.

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