Spot gold trades near highs after U.S. weekly jobless claims rise to 219k
Gold prices were continuing to trade near session highs on Thursday morning following the release of mixed labor market data after the number of Americans filing new claims for unemployment benefits came in above economists’ forecasts, while continuing claims fell.
Initial claims for state unemployment benefits came in at seasonally adjusted 219,000 for the week ending April 4, the Labor Department announced on Thursday. The number was above expectations, as consensus estimates forecasted a reading of 210,000 claims. The previous week’s figure was revised up to 203,000 from 202,000.
Spot gold continued to trade near session highs after spiking to $4,759.70 just after 8:00 am, and last traded at $4,744.28 per ounce for a gain of 0.53% on the daily chart.
Meanwhile, 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 – came in at 209,500 following the previous week's revised average of 208,000, and against expectations for 216,000.
Continuing jobless claims, which represent the number of people already receiving benefits, were at 1.794 million during the week ending March 28 against expectations for 1.840, and also below the previous week’s downwardly revised 1.832 million level.
Jeffrey Roach, Chief Economist for LPL Financial, told Kitco News that the number of Americans filing for unemployment benefits remains low, which increases the likelihood that the Federal Reserve will hold rates for longer.
"The labor market is holding steady amid a slowdown which gives the Fed some time to wait and manage to their dual mandate," he said. "Given the macro picture, I do not buy into the narrative that the Fed will hike this year."
