Gold market largely ignores 12K drop in U.S. weekly jobless claims

NEW YORK (July 13) The U.S. labor market continues to show robust momentum as the number of workers applying for first-time unemployment benefits dropped more than expected.

Thursday, the U.S. Labor Department said that weekly jobless claims fell by 12,000 to 237,000, down from the previous week's revised estimate of 249,000 claims.

The latest labor market data significantly beat expectations. According to consensus forecasts, economists were expecting to see jobless claims rise at a faster pace to 251,000.

After breaking out above $1,950 an ounce on Wednesday, the gold market is not seeing any major profit taking following the latest labor market data. August gold futures last traded at $1,960.20 an ounce, roughly unchanged 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 to 246,750, a decrease of 6,750 claims from the previous week's revised average.

Continuing jobless claims, which represent the number of people already receiving benefits, were at 1.729 million during the week ending July 1, increasing by 11,000 from the previous week's revised level.

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