Gold prices down but largely ignores drop in U.S. weekly jobless claims
The U.S. labor market continues to see persistent resilience as the number of American workers applying for first-time unemployment benefits remains relatively muted.
At the same time, better-than-expected economic data continues to have little impact on gold as technical momentum ebbs and flows.
Initial claims for state unemployment benefits fell by 9,000 to a seasonally adjusted 202,000 for the week ended March 28, the Labor Department said Thursday. The data beat expectations; according to consensus estimates, economists had forecast a rise to 212,000 claims. The previous week’s numbers were revised up by 1,000 jobs to 211,000.
Weekly jobless claims have fallen to their lowest level since the start of the year.
The gold market is not paying attention to the economic data, as prices face solid technical selling pressure. Spot gold last traded at $4,618.50 a ounce, down nearly 3% on the day.
The selling pressure comes as prices have been unable to break above initial resistance at $4,800 an ounce.
The four-week moving average for new claims—often viewed as a more reliable measure of the labor market because it smooths out week-to-week volatility—fell to 207,750, down from last week’s revised average of 210,750.
At the same time, laid-off workers are seeing some challenges entering the workforce. The report said continuing claims, published with a one-week delay, rose to 1.841 million, up 25,000 from the previous week’s revised level of 1.816 million.
According to some analysts, better-than-expected labor market data could put some pressure on gold, as it gives the Federal Reserve room to maintain its current neutral monetary policy stance.
The central bank has said that it is in no hurry to lower interest rates, as inflation pressures remain elevated and the labor market remains relatively healthy.
