Spot gold prices are currently testing support at $2,700 per ounce, following the latest U.S. weekly jobless claims report, which revealed an increase to 242,000 for the week ending December 7, 2024. This figure exceeded economists' expectations of 221,000 and marked a rise from the previous week's unrevised claims of 224,000. After the data was released at 8:30 am EDT, gold prices fell to $2,702.96, reflecting a decrease of 0.56% for the day. The four-week moving average for new claims stood at 224,250, surpassing the anticipated 219,000. Additionally, continuing jobless claims reached 1.886 million, which was higher than both the expected 1.870 million and the prior week's 1.871 million.
In the context of the broader economic landscape, the recent rise in jobless claims may signal potential weaknesses in the labor market, which could influence investor sentiment towards safe-haven assets like gold. Earlier, spot gold prices had stabilized at $2,667.11 per ounce, buoyed by a positive report from the U.S. housing market, where existing home sales rose by 3.4% in October 2024, reaching an annual rate of 3.96 million units. This increase in home sales, along with a rise in total housing inventory and median home prices, suggested that the housing market might be recovering from its downturn. However, the interplay between a recovering housing market and rising jobless claims creates a complex narrative for gold prices, as a stronger economy typically leads to reduced demand for gold, while economic uncertainties can bolster its appeal. [34b61fa0] [2573a906] [57825f76] [7aec7093] [d01d780e] [86a2bba1] [408c4f2e]