(Kitco News) - The gold market remains firmly caught in a downtrend as prices trade near critical long-term support, and even potentially slowing momentum in the labor market has not been enough to pull prices out of their tailspin.
Initial claims for state unemployment benefits came in at a seasonally adjusted 229,000 for the week ending June 6, an increase of 4,000, the Labor Department announced Thursday. The number was above expectations, as consensus estimates called for 220,000 claims. The previous week’s figure was unrevised at 225,000.
The gold market is not seeing much reaction to the weaker-than-expected labor market data. The lackluster price action comes after strong employment growth in May. Despite some short-term volatility, analysts and economists note that the labor market remains relatively healthy.
Gold prices last traded at $4,067.90 an ounce, roughly unchanged on the day. Analysts are watching critical support at $4,000 an ounce very closely.
Meanwhile, the four-week moving average for new claims — often viewed as a more reliable measure of the labor market since it smooths week-to-week volatility — rose to 219,000, up from the previous week’s unrevised average of 214,750.
Continuing jobless claims, which represent the number of people already receiving benefits, were at 1.795 million during the week ending May 30, compared to the previous week’s revised level of 1.777 million.
