On July 9, the gold futures ended lower and pulled back a day after recording another settlement at the highest level since September 2011. However, the precious metal held its ground above $1,800 per ounce after data revealed weekly jobless claims in the US remained well above the one-million mark.
The chief market analyst at AvaTrade, Naeem Aslam, commented:
“The U.S. economy is in recovery mode, but the recovery isn’t that smooth as per the data. There is a feeling that momentum in terms of recovery has slowed or started to level off.”
Notably, the number of initial jobless claims dropped by around 100,000 to a 4-month low of 1.31 million in the week that ended on July 4. In the meantime, the number of individuals getting traditional jobless benefits through the states dropped to 18 million during the week that ended on June 27 from about 18.8 million. These are the people who make up what is known as continuing claims.
In the scenario that all eight state and federal assistance programs are included, the continuing claims cumulated to an unadjusted 32.9 million during the seven days ended June 20. That is the most recent data available. It marks an increase from 31.5 million in the previous week.
Data Effect On Markets
Based on that data, the gold futures spent some considerable amount of time paring some of the losses that they experienced shortly before that release. U.S. benchmark stock indexes were trading lower while the gold futures settled. However, the Nasdaq Composite COMP, +0.52%, and S&P 500 SPX, -0.56% have held strongly onto their gains for that week so far.
The chief market strategist at FXTM, Hussein Sayed, said in a market update:
“If investors truly believed that the economy was returning to pre-pandemic levels