Gold holding near $2,500 as weekly jobless claims hits one-year high

Gold holding near $2,500 as weekly jobless claims hits one-year high

(Kitco News, Thurs. Aug. 1st, 2024) – The gold market continues to trade near all-time highs around $2,500 an ounce and remains supported as the U.S. labor market continues to lose momentum.

Initial claims for state unemployment benefits rose by 14,000 claims to a seasonally adjusted 249,000 for the week ending July 27, the Labor Department announced on Thursday. The number was weaker than expectations, as consensus estimates forecasted a reading of 236,000 claims. The previous week’s figure was unrevised at 235,000 claims.

Unemployment claims have risen to their highest level since August 2023.

The gold market is holding its ground in its initial reaction to the weaker-than-expected employment data. December gold futures last traded at $2,495.90 an ounce, up nearly 1% on the day.

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 – rose to 238,000, up slightly from the previous week’s unrevised average of 235,500.

Not only are more American workers being let go, but they are now struggling to find new jobs.

Posted by:

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com