Spot gold sets fresh session high above $2,326 per ounce after weekly jobless claims spike to 242k

Initial claims for state unemployment benefits rose to a seasonally adjusted 242,000 for the week ending June 8, the Labor Department announced on Thursday. The number was significantly higher than expectations, as consensus estimates forecasted a reading of 224,000 claims. The previous week’s figure was unrevised at 229,000.

The gold market rallied following the release of the labor market data, which came out at the same time as the May PPI report. Spot gold was trading near session lows around $2,305 per ounce in the minutes before the release, but shot to a fresh session high afterward, last trading at $2,326.80 per ounce, up 0.07% 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 227,000, up from the previous week’s unrevised average of 222,250.

Continuing jobless claims, which represent the number of people already receiving benefits, were at 1.820 million during the week ending June 1, against expectations for a 1.800 reading and the previous week’s revised 1.790 million level.

Markets are paying close attention to the labor market, which remains a critical factor for the Federal Reserve’s monetary policy. Economists note that a tight labor market will increase wage inflation, adding to broadly higher consumer prices.

Posted by:

Jack Dempsey  President

401 Gold consultants LLC

jdemp2003@gmail.com