(Kitco News) – Gold extended early gains after Labor Department data Thursday showed that initial weekly U.S. jobless claims rose by 7,000 to a seasonally adjusted 214,000 in the week to Saturday.
Consensus expectations compiled by various news organizations had called for initial claims to be around 205,000 to 207,000. The government left the week’s tally unrevised at the previously reported 207,000.
Gold came into the New York trading session with a stronger tone after the sell-off in global stocks Wednesday and so far Thursday, analysts said. Comex December gold was trading at $1,207.90 an ounce about four minutes before reports on jobless claims and the Consumer Price Index. As of 8:36 a.m. EDT, the contract was at $1,211.10 an ounce, a gain for the day of $17.70.
Meanwhile, the four-week moving average for new claims – often viewed as a more reliable measure of the labor market since it smoothens out week-to-week volatility – was up by 2,500 claims to 209,500.
Continuing jobless claims, the number of people already receiving benefits and reported with a one-week delay, increased by to a seasonally adjusted 4,000 to 1,660,000 during the week ending Sept. 29, the government said.
Traders monitor jobs data closely to gauge how aggressively the U.S. Federal Open Market Committee alters monetary policy.
By Allen Sykora
For Kitco News