Gold price returns above $1,700 as weekly US jobless claims rise to 250K

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(Kitco News) – A downturn in the US labor market is putting additional selling pressure on the US dollar, pushing gold prices into neutral territory.

On Thursday, the US Labor Department reported that weekly jobless claims rose by 7,000 to 251,000 from the previous week’s unrevised estimate of 244,000 claims.

The latest labor market data fell short of expectations. Economists had expected jobless claims to fall to around 240,000, according to consensus estimates. This is the third straight week that initial jobless claims have missed expectations. Claims rose for seven consecutive weeks.

The gold market continues to rise after disappointing employment data. August gold futures last traded at $1,701 an ounce, roughly neutral on the day.

The four-week moving average for new claims — often seen as a more reliable gauge of the labor market because it smooths out week-to-week volatility — rose to 240,500, up 4,500 claims from the previous week’s revised average .

While initial claims remain volatile, some economists are paying more attention to ongoing claims, which have seen a steady decline in recent weeks.

Continuing jobless claims, which represent the number of people already receiving benefits, were 1.384 million in the week ended July 9, up 51,000 from the previous week’s revised level.

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