Gold market sells off as U.S. weekly jobless claims fall by 7K

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Gold market sells off as U.S. weekly jobless claims fall by 7K

Thursday, the U.S. Labor Department said that weekly jobless claims fell by 7,000 to 221,000 for the week ending July 22, down from the previous week's unrevised estimate of 228,000 claims.

The latest labor market data came in stronger than expected. According to consensus forecasts, economists were expecting to see jobless claims rise to 234,000. 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 – fell to 233,750, a decrease of 3,750 claims from the previous week's unrevised average.

Continuing jobless claims, which represent the number of people already receiving benefits, were at 1.690 million during the week ending July 15, decreasing by 59,000 from the previous week's revised level. The better-than-expected employment data helped send gold prices sharply lower on Thursday morning. Gold was trading at $1977.09 in the minutes before the 8:30 am EDT release, but fell to $1964.04 afterward, and is continuing its decline.

 

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