Gold Builds On Gains After U.S. Jobless Claims Rise 7,000
Editor's Note: Updating earlier story with more details from report.
(Kitco News) - Goldextended early gains after Labor Department data Thursday showed that initialweekly U.S. jobless claims rose by 7,000 to a seasonally adjusted 214,000in the week to Saturday.
Consensusexpectations compiled by various news organizations had called for initialclaims to be around 205,000 to 207,000. The government left the week's tally unrevisedat the previously reported 207,000.
Goldcame into the New York trading session with a stronger tone after the sell-offin global stocks Wednesday and so far Thursday, analysts said. Comex Decembergold was trading at $1,207.90 an ounce about four minutes before reports onjobless claims and the Consumer Price Index. As of 8:36 a.m. EDT, the contractwas at $1,211.10 an ounce,a gain for the day of $17.70.
Meanwhile,the four-week moving average for new claims - often viewed as a more reliablemeasure of the labor market since it smoothens out week-to-week volatility -was up by 2,500 claims to 209,500.
Continuing jobless claims, the number of people alreadyreceiving benefits and reported with a one-week delay, increased by to aseasonally adjusted 4,000 to 1,660,000 during the week ending Sept. 29, thegovernment said.
Traders monitor jobsdata closely to gauge how aggressively the U.S. Federal Open Market Committeealters monetary policy. By Allen SykoraFor Kitco News
Follow @AllenSykora
asykora@kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.