Gold under pressure as jobless claims remain below 200K, supporting further rate hikes

(Kitco News) - The gold market remains under pressure and could face further losses as the U.S. labor market remains fairly resilient, with the number of American workers applying for first-time unemployment benefits remaining below a critical level. Initial claims for state unemployment benefits came in at a seasonally adjusted 197,000 for the week ending September 19, the Labor Department announced on Thursday. The number was slightly below expectations, as consensus estimates forecast a reading of 201,000 claims. The previous week’s figure was revised slightly higher to 198,000 claims. The gold market is not seeing much reaction to the latest employment data. Spot gold last traded at $4,264.40 an ounce, down 0.50% on the day. The precious metal continues to struggle below $4,300 an ounce as the U.S. 10-year Treasury yield rises to 5.11%, its highest level in 20 years. Persistent inflation pressures continue to drive bond yields higher as the economic environment forces the Federal Reserve to maintain its tightening bias. Some analysts note that the latest employment data could continue to weigh on gold, as a healthy labor market gives the Federal Reserve more room to raise interest rates. Neils Christensen Neils Christensen has a diploma in journalism from Lethbridge College and has more than a decade of reporting experience working for news organizations throughout Canada. His experiences include covering territorial and federal politics in Nunavut, Canada. He has worked exclusively within the financial sector since 2007, when he started with the Canadian Economic Press. Neils can be contacted at: 1 866 925 4826 ext. 1526 nchristensen at kitco.com @KitcoNewsNOW Tags: gold prices gold US labor market US jobless claims us economy US interest rates Federal Reserve Share 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.