Gold price bounces from $1,675, ignoring unchanged reading of weekly US unemployment claims

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(Kitco News) – The gold market continues to maintain critical long-term support levels, even as the US labor market remains healthier than expected, with fewer workers seeking unemployment benefits for the first time.

On Thursday, the U.S. Department of Labor said weekly unemployment claims rose 5,000 to 213,000, up from last week’s revised downward estimate of 208,000 claims. The data beat expectations as economists looked for claims that would rise to 220,000.

Gold’s ability to hold $1,675 continues to attract some buyers as the precious metal sees bullish momentum as its first reaction to the latest economic data. December gold futures are trading near session highs, last trading at $1,686 an ounce, up 0.61% on the day.

The four-week moving average for new claims — often seen as a more reliable measure of the labor market as it smooths out week-over-week volatility — fell to 216,750, down 6,000 claims from last week’s revised average.

Sustained unemployment claims, which represent the number of people already receiving benefits, stood at 1.379 million in the week ending Sept. 10, down 22,000 from the previous week’s revised level.

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