In the wake of a noticeable uptick in first-time unemployment claims in the United States, the labor market appears to be exhibiting signs of a slowdown, aligning with anticipated expectations.
On Thursday, the U.S. Labor Department reported a sharp increase in weekly jobless claims, with the number rising by 10,000 to reach 210,000 during the week ending October 21, up from the preceding week’s estimate of 200,000 claims. Economists had predicted a climb to approximately 208,000, in line with consensus forecasts.
Despite this development, the gold market demonstrated minimal response to the latest employment data. December gold futures were observed trading at $1,993.50 per ounce, indicating marginal fluctuations for the day.
The four-week moving average, often considered a more reliable measure of the labor market due to its ability to smooth out weekly fluctuations, recorded an increase to 207,500, marking a rise of 1,250 claims from the revised average of 206,250 in the previous week.
Meanwhile, continuing jobless claims, reflecting the number of individuals currently receiving benefits, stood at 1.79 million during the week ending October 14, showing an escalation of 63,000 from the revised level of 1.727 million in the prior week.
Economists continue to closely monitor the U.S. labor market as a critical determinant influencing the Federal Reserve’s decision on monetary policy. The central bank has reiterated its stance, emphasizing that it will maintain its current tightening bias until significant slack in the labor market becomes apparent.