Gold price holding steady at $1,800 as US weekly jobless claims rise to 260K

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(Kitco News) – Activity in the US labor market remains volatile as the number of US workers applying for unemployment benefits for the first time rises in line with expectations.

The gold market continues to test a significant resistance at $1,800 an ounce according to the latest labor market data.

On Thursday, the U.S. Department of Labor said weekly unemployment claims rose 6,000 to 260,000, up from last week’s revised downward estimate of 254,000 claims.

The most recent labor market data was relatively in line with expectations.

The gold market largely ignores the latest economic data. December gold futures last traded at $1,801 an ounce, up 1.39% on the day.

The four-week moving average for new claims — often seen as a more reliable measure of the labor market as it smooths out week-over-week volatility — rose to 254,750, up 6,000 claims from last week’s revised average.

Some economists note that the rise in the four-week moving average does not bode well for future strength in the labor market. Many economists and politicians have said that robust job growth in the US is one of the main reasons why the US economy is not in recession, despite the economy contracting in two consecutive quarters.

Sustained unemployment claims, which represent the number of people already receiving benefits, stood at 1,416 million in the week ending July 23, up 48,000 from the previous week’s revised level.

The latest weekly unemployment figures come as economists and investors eagerly await Friday’s nonfarm payroll report. Economists expect the US economy to create 250,000 jobs in July.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; nor Kitco Metals Inc. neither the author can guarantee such accuracy. This article is for informational purposes only. It is not a request to exchange commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article assumes no liability for loss and/or damage arising from the use of this publication.

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