Gold market continues to see technical selling pressure as U.S. weekly jobless claims fall to 222K

(Kitco News) – Slack continues to build in the U.S. Labor market as the number of American workers applying for first-time unemployment benefits remains at elevated levels. However, the gold market is seeing little reaction to the latest labor market data.

Thursday, the U.S. Labor Department said that weekly jobless claims fell by 10,000 to 222,000 during the week ending May 11, down from the previous week’s revised estimate of 232,000 claims.

According to consensus estimates, jobless claims fell slightly less than expected. Economists forecasted a drop to 219,000.

The gold market is not reacting much to the latest labor market data. It is experiencing some technical selling pressure after testing resistance just below $2,400 an ounce. June gold futures last traded at $2,385.30 an ounce, down 0.40% on the day.

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 – rose to 217,750, an increase of 2,500 claims from the previous week’s revised average of 215,250.

Along with elevated initial claims, the data shows that some laid-off workers are having trouble finding new employment.

Continuing jobless claims, which represent the number of people already receiving benefits, were at 1.794 million during the week ending May 4, increasing by 13,000 from the previous week’s revised level of 1.781 million.

Economists continue to watch the U.S. labor market closely, as it remains a key factor in the Federal Reserve’s monetary policy. Some analysts note that gold’s latest drive to $2,400 was due to last week’s significant jump in first-time unemployment claims, which supports expectations that the Federal Reserve is on track to cut interest rates this year.