Are Gold Prices in Trouble? U.S. Jobless Claims Hit a 6-Week High!
Are Gold Prices in Trouble? U.S. Jobless Claims Hit a 6-Week High!
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Gold prices are experiencing technical selling pressure, even as U.S. labor data shows an increase in unemployment claims. Despite the latest labor market trends, the gold market remains largely unresponsive, with spot gold last trading at $2,735.70 per ounce, marking a 0.73% decrease for the day. Attempts to breach resistance levels at $2,750 in overnight trading were unsuccessful.
Gold prices are experiencing technical selling pressure, even as U.S. labor data shows an increase in unemployment claims. Despite the latest labor market trends, the gold market remains largely unresponsive, with spot gold last trading at $2,735.70 per ounce, marking a 0.73% decrease for the day. Attempts to breach resistance levels at $2,750 in overnight trading were unsuccessful.
Rise in Jobless Claims
The U.S. Department of Labor reported an increase in initial jobless claims, rising by 6,000 to a seasonally adjusted 223,000 for the week ending January 18.
This figure slightly exceeded expectations, with forecasts predicting 221,000 claims.
The previous week’s data remained unrevised at 217,000 claims.
Four-Week Moving Average
The four-week moving average for new claims, a more stable indicator of labor market trends, rose slightly:
It increased by 750 to reach 213,500, up from last week’s unrevised average.
Challenges for the Unemployed
While initial jobless claims remain steady, those already unemployed face challenges reentering the workforce.
Continuing jobless claims, which track individuals receiving benefits, rose by 46,000 to 1.974 million.
This marks a sharp increase from the previous week’s revised figure of 1.853 million.
The report highlights that this is the highest level for insured unemployment since November 2021, when the number reached the same level.
Insights from Economists
Economists caution that the rise in continuing claims could indicate emerging weakness in the labor market. Monitoring these trends is crucial for understanding broader economic dynamics and their potential impact on investment strategies.
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