Slack persists in the U.S. labor market as the influx of initial unemployment claims maintains its high level. Nevertheless, the gold market shows minimal response to the most recent labor market statistics.
In the latest update from the U.S. Labor Department, weekly jobless claims have declined by 10,000 to 222,000 for the week ending May 11, slightly below the revised estimate of 232,000 from the previous week.
Economists’ consensus projections anticipated a slighter drop in jobless claims, forecasting a decrease to 219,000.
Despite the latest labor market figures, the gold market remains relatively unaffected, encountering some technical selling pressure post its approach to resistance just below $2,400 per ounce. June gold futures concluded trading at $2,385.30 an ounce, marking a 0.40% decline for the day.
The four-week moving average for new claims, regarded for its stability amidst weekly fluctuations, rose to 217,750, up by 2,500 claims compared to the revised average of 215,250 from the previous week.
Alongside the persistently high initial claims, the data indicates challenges for displaced workers in securing new employment opportunities.
Continuing jobless claims, representing individuals already receiving benefits, reached 1.794 million for the week ending May 4, increasing by 13,000 from the revised figure of 1.781 million in the preceding week.
Economists maintain a close watch on the U.S. labor market, recognizing its significance in shaping Federal Reserve monetary policy. Some analysts attribute gold’s recent ascent to $2,400 to last week’s substantial surge in initial unemployment claims, reinforcing expectations of potential interest rate cuts by the Federal Reserve later this year.
