Gold price bounces off $1,675, ignoring unchanged reading in US weekly jobless claims

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

Thursday, the US Labor Department said that weekly jobless claims rose by 5,000 to 213,000, up from the previous week’s downwardly revised estimate of 208,000 claims. The data beat expectations as economists were looking for claims to rise to 220,000.

Gold’s ability to hold $1,675 continues to attract some buyers as the precious metal see some bullish momentum in initial 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 viewed as a more reliable measure of the labor market since it flattens week-to-week volatility – fell to 216,750, down by 6,000 claims from the previous week’s revised average.

Continuing jobless claims, which represent the number of people already receiving benefits, were at 1.379 million during the week ending Sept. 10, falling by 22,000 from the previous week’s revised level.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/or damages arising from the use of this publication.

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