(Kitco News) - Some stability in the U.S. labor market, as the number of American workers applying for first-time unemployment benefits remains relatively unchanged for the fourth consecutive week, is doing little to derail renewed momentum in the gold market.
Initial claims for state unemployment benefits came in at a seasonally adjusted 206,000 for the week ending August 29, the Labor Department announced Thursday. The number was in line with expectations. The previous week’s figure was revised slightly higher to 204,000 claims, compared with the previously reported 203,000.
After a slow start to the week, bullish momentum has started to pick up in the gold market after two disappointing employment reports raised concerns about the health of the labor market. Spot gold last traded at $4,466.90 an ounce, up nearly 2% on the day.
Analysts are paying close attention to broader labor market data and have said that weak job growth could force the Federal Reserve to leave interest rates unchanged later this month. Gold prices have struggled in recent days after Federal Reserve Chair Kevin Warsh said in his speech at the Central Bank Symposium in Jackson Hole that inflation is a bigger concern than a cooling labor market.
