Gold price holds steady at $1,800 as US weekly jobless claims hit 260,000

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(Kitco News) – Activity in the US labor market continues to be volatile, with the number of US workers applying for unemployment benefits for the first time rising in line with expectations.

The gold market continues to test significant resistance at $1,800 an ounce following the latest labor market data.

On Thursday, the US Department of Labor said weekly jobless claims rose by 6,000 to 260,000, up from the previous week’s downwardly revised estimate of 254,000.

The latest labor market data has been relatively in line with expectations.

The gold market largely ignores the latest economic data. December gold futures last traded at $1,801 an ounce, up 1.39% on the day.

The four-week moving average of new claims — often seen as a more reliable gauge of the labor market since it smooths out week-to-week volatility — rose to 254,750, up 6,000 claims from to the revised average of the previous week.

Some economists note that the rise in the four-week moving average does not bode well for the future strength of the labor market. Many economists and politicians have said that robust job growth in the United States is one of the main reasons the US economy is not in recession, despite the economy shrinking over the past two consecutive quarters.

Continuing jobless claims, which represent the number of people already receiving benefits, were 1.416 million in the week ending July 23, up 48,000 from the revised level the previous week.

The latest weekly unemployment figures come as economists and investors eagerly await Friday’s nonfarm payrolls report. Economists expect the US economy to have added 250,000 jobs in July.