World gold prices recover from lows thanks to positive employment data
World gold prices rebounded from their session lows after better-than-expected US labor market data was released.
The number of initial claims for unemployment benefits in the week ending July 19 was 217,000, the Labor Department said, below the forecast of 228,000. The number was also down slightly from the previous week, when it was unchanged at 221,000.
Immediately after the data was released, at 8:30 a.m. US time, spot gold prices recovered from the bottom and traded around $3,364.34/ounce, although still down 0.68% compared to yesterday.
The labor market is more stable than expected.
In addition to the weekly data, the four-week average of jobless claims – generally considered a more stable measure because it minimizes short-term volatility – also came in at 224,500, well below the forecast of 231,000. The previous week, the figure was 229,500.
However, continuing jobless claims – the number of people receiving benefits – rose slightly to 1.955 million in the week ended July 12, above expectations of 1.952 million and up from the previous week (revised to 1.951 million).
Impact on the gold market
The positive employment data helped gold prices slow their decline, although selling pressure remained. Normally, when the economy shows signs of stability, investors will be less likely to rush to gold as a safe haven. However, the fact that the data was not too different from forecasts prevented the market from reacting too strongly.
