Gold Flat As Jobless Claims Drop To 209K

EDITOR'S NOTES

In an era where economic indicators are celebrated as gospel, the latest report on the U.S. jobless claims dropping to 209K, leaving gold prices unimpressively flat, is a glaring testament to the shortsightedness of market analysts and investors alike. This myopic jubilation, echoed in the halls of Wall Street, is nothing but a smokescreen, masking the underlying rot that festers in the global economy. The stagnation of gold prices, in the face of seemingly positive job data, is not a sign of stability, but a forewarning of the impending economic catastrophe that looms over our heads, ignored by the blissfully ignorant.

Bill Brocius Nov 23, 23

(Kitco News) - The gold market is flat after the latest employment data showed unexpected improvement in the U.S. labor market.

On Wednesday, the U.S. Labor Department said weekly jobless claims fell by 24,000 to 209,000 in the week ending Nov. 18, down from the previous week's upwardly revised estimate of 233,000 claims.

The latest labor market data was much better than expectations, as consensus estimates called for a 225,000 print. Initial unemployment claims posted their highest reading since late August during the previous week.

The gold market sold off slightly on the better than expected employment data, with spot gold dropping from $2,001.46 in the minutes before the release to session highs above $1,997.37 per ounce immediately afterward. The Federal Reserve has said that it needs to see some weakness in the U.S. labor market before it starts looking at potential rate cuts.

Meanwhile, 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 220,000, down from the previous week's revised average of 223,750.

Continuing jobless claims, representing the number of people already receiving benefits, were 1.840 million during the week ending Nov. 11, below the previous week's revised level of 1.862 million and also lower than the expected level of 1.875 million.

Originally published by: Ernest Hoffman on Kitco News