(Kitco News) - The gold market is holding its ground even as it faces further headwinds from a relatively healthy labor market, with the number of American workers applying for first-time unemployment benefits remaining below a key level for the third consecutive month.
Initial claims for state unemployment benefits came in at a seasonally adjusted 297,000 for the week ending September 26, the Labor Department announced Thursday. The number was slightly better than expectations. The previous week’s figure was revised slightly higher to 198,000 claims.
Analysts note that a stable labor market gives the Federal Reserve room to raise interest rates at next week’s monetary policy meeting. Expectations for at least one more rate hike before the end of the year are supporting U.S. 10-year yields near 5.30%, their highest level in nearly 20 years.
Despite elevated opportunity costs, gold is not seeing any major reaction to the positive employment data. Spot gold last traded at $4,182.50 per ounce, up 0.65% on the day.
