The U.S. labor market continues to see robust momentum as the number of workers applying for first-time unemployment benefits continues to decline.
However, the gold market is not seeing much reaction to the better-than-expected employment data. Despite some selling pressure, the precious metal continues to test resistance just below $1,980 an ounce. August gold futures last traded at $1,976.80 an ounce down 0.20% on the day.
Thursday, the U.S. Labor Department said that weekly jobless claims fell by 9,000 to 228,000, down from the previous week’s unrevised estimate of 237,000 claims.
The latest labor market data came in stronger than expected. According to consensus forecasts, economists were expecting to see jobless claims rise to 239,000.
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 – fell to 237,500, a decrease of 9,250 claims from the previous week’s revised average.
Continuing jobless claims, which represent the number of people already receiving benefits, were at 1.754 million during the week ending July 8, rising by 33,000 from the previous week’s revised level.
