(Kitco News) - The gold market remains under pressure and could face further losses as the U.S. labor market remains fairly resilient, with the number of American workers applying for first-time unemployment benefits remaining below a critical level.
Initial claims for state unemployment benefits came in at a seasonally adjusted 197,000 for the week ending September 19, the Labor Department announced on Thursday. The number was slightly below expectations, as consensus estimates forecast a reading of 201,000 claims. The previous week’s figure was revised slightly higher to 198,000 claims.
The gold market is not seeing much reaction to the latest employment data. Spot gold last traded at $4,264.40 an ounce, down 0.50% on the day. The precious metal continues to struggle below $4,300 an ounce as the U.S. 10-year Treasury yield rises to 5.11%, its highest level in 20 years.
Persistent inflation pressures continue to drive bond yields higher as the economic environment forces the Federal Reserve to maintain its tightening bias. Some analysts note that the latest employment data could continue to weigh on gold, as a healthy labor market gives the Federal Reserve more room to raise interest rates.
The four-week moving average for new claims — often viewed as a more reliable measure of the labor market because it smooths out week-to-week volatility — came in at 202,250, compared with the previous week’s revised average of 204,000.
Continuing jobless claims, which represent the number of people already receiving benefits, came in at 1.719 million for the week ending September 12, up slightly from the previous week’s revised level of 1.717 million.
