Gold and Precious Metals

Gold sees technical selling pressure as weekly jobless claims rise to a nine-week high

(Kitco News) -The gold market continues to test initial support at $2,300 an ounce and not attracting any new bullish momentum even as the U.S. labor market shows signs of weakening.

Initial claims for state unemployment benefits increased by 9,000 to a seasonally adjusted 221,000 for the week ended March 30, the Labor Department said Thursday.

The employment data was weaker than expected. According to consensus estimates, economists had forecast to remain relatively steady at 212,000. The previous week’s claims were revised up slightly to 212,000.

Weekly jobless claims have risen to their highest level since early February.

The gold market is not seeing much reaction to the latest employment data. June gold last traded at $2,304.90 an ounce, down 0.44% on the day.

According to some analysts gold’s price action is not surprising; the precious metal is seeing some technical selling pressure after hitting a fresh all-time high of $2,324.80 an ounce.

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 214,250, an increase of 2,750 from the previous week’s revised average.

The advance number for seasonally adjusted insured unemployment during the week ending March 23 was 1.791, a decrease of  19,000 from the previous week’s revised.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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