Gold Prices Holding Gains Despite Positive Labor Market Data
(Kitco News)- Goldprices are holding on to modest gains Thursday even as U.S. initial jobless claimsremain near their lowest level in 49 years.
Initialweekly U.S. jobless claims rose by only 2,000 to a seasonally adjusted 211,000in the week to Saturday, the Labor Department reported, Thursday.
Consensusforecasts compiled by various news organizations had called for initial claimsto be around 225,000. The government left the previous week's report unrevised.
Goldprices are reacting little to U.S. economic data after it found some momentum followingWednesday's Federal Reserve monetary policy decision. Although the U.S. centralbank left rates unchanged, it hinted that it would be comfortable seeinginflation rise above the 2% target, which some have said is bullish for theyellow metal because this scenario will keep real interest rates low.
Junegold futures last traded at $1,316.90 an ounce, up 0.87% on the day.
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 down by 7,750 claims to 221,500.
Continuingjobless claims, the number of people already receiving benefits and reportedwith a one-week delay, decreased by 77,000 to a seasonally adjusted 1.756million during the week ending April 21, the government said. “This isthe lowest level for insured unemployment since December 8, 1973 when it was1,717,000,” the report said.
Tradersmonitor jobs data closely to gauge how aggressively the U.S. Federal OpenMarket Committee alters monetary policy.
By Neils ChristensenFor Kitco News
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