(Kitco News) – Gold prices are holding near session highs and testing critical resistance below $3,400 an ounce as the U.S. labor market continues to lose momentum, as the number of American workers applying for first-time unemployment benefits remains elevated.
Initial claims for state unemployment benefits were unchanged at a seasonally adjusted 248,000 for the week ending June 7, the Labor Department announced on Thursday. The number was higher than expected, as consensus estimates forecasted a reading of 242,000 claims. The previous week’s figure was revised up by 1,000 claims to 248,000.
Jobless claims are holding at their highest level since early October.
Gold prices have been consolidating in a narrow range as it has managed to hold critical support above $3,300 an ounce. Analysts note the weaker employment data will continue to provide support for the precious metal. Spot gold last traded at $3,387.61 an ounce, up 1% on the day.
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.
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