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Gold prices trading near session highs as weekly jobless claims rise by 220k, in line with expectations

December 7, 2023

NEW YORK (December 7) The gold prices are trading near session highs re-testing critical resistance at $2,050 an ounce as the U.S. labor market appears to stabilize as the number of America workers applying for first-time unemployment benefits remains roughly unchanged from last week.

Thursday, the U.S. Labor Department said that weekly jobless claims increased by 1,000 to 220,000 during the week ending Dec. 2, up from the previous week's revised estimate of 219,000 claims. 

According to consensus forecasts, economists were expecting to see jobless claims rise to around 221,000. 

The gold market is not seeing much reaction to the latest employment data as it looks to recover from Monday’s technical blowoff top. February gold futures last traded at $2,052.50 an ounce, up 0.22% 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 – rose to 220,750, an increase of 500 claims from the previous week's revised average of 220,250. 

Continuing jobless claims, which represent the number of people already receiving benefits, were at 1.861million during the week ending Nov. 25, falling by 64,000 from the previous week's revised level of 1.861 million. 

Economists continue to watch the U.S. labor market closely as it is a key factor that will determine the Federal Reserve’s monetary policy decision. The U.S. central bank has been clear that it won’t shift its current tightening bias until they see further slack in the labor market.

KitcoNews

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