Gold Inches Higher After Data Reveals Slump In Jobless Claims

(RTTNews) - Gold prices saw marginal gains on Thursday after official labor data surprisingly revealed that the number of new filings for unemployment fell to a greater than three-year low, contrasting with recent private figures indicating weakness in the job market.

Front Month Comex Gold for December delivery rose by $12.50 (or 0.30%) to $4,211.80 per troy ounce.

Front Month Comex Silver for December delivery slumps by $1.0740 (or 1.85%) to $56.847 per troy ounce.

In the U.S. today, the Challenger, Gray and Christmas private data on jobs showed that U.S.-based employers announced 71,321 job cuts in November, the highest since 2022, compared to 57,727 a year earlier. A majority of the reductions were from telecommunication providers (at 15,139 - primarily from Verizon) followed by tech (at 12,377).

Employers announced 9,074 hiring plans in November, the least in three months.

Meanwhile, the Department of Labor sprang a surprise revealing a slump in initial jobless claims by 27,000 from the previous week to 191,000 in the week ended November 29, marking a three-year low, easing concerns of a deterioration in labor market.

For the week ending November 22, continuing jobless claims decreased to 1,939,000, the lowest in seven weeks, indicating that it is hard for job seeking Americans to land in a new job.

Notably, yesterday's private payrolls data indicated a loss of 32,000 jobs in November.

U.S. President Donald Trump's administration has reportedly cancelled a series of interviews with finalists in the race for next U.S. Federal Reserve's Chair, a move reaffirming that Trump has made up his mind on Kevin Hassett as his preferred choice.

As Hassett has explicitly stated that he would have already brought down the interest rates if he were the Fed Chair, markets are now near certain that the Fed will lower the rates next week.

Currently, CME Group's FedWatch Tool indicates that investors are betting on an 89.2% chance of a quarter-point interest rate cut.

This speculation lifted the risk appetite in markets with U.S. indices performing decently, which capped the safe-haven demand for the yellow metal.

After assimilating recent employment numbers, investors are now anticipating the delayed September month's Personal Consumption Expenditures index, another vital indicator to arrive before the Fed's last meeting this year.

On the geopolitical front, as part of the ongoing efforts by the U.S. to end the Russia-Ukraine war, on Tuesday, the envoy for Russia Steven Witkoff had a more than four-hour long discussion with the Russian President Vladimir Putin in Moscow.

After the negotiations, Russian officials hinted that the talks did not deliver any breakthrough on the crucial issue of "Russian-occupied territories".

Today, the head of Ukraine's national security Rustem Umerov is meeting Witkoff in Miami to take things to the next level.

The U.S. dollar index was last seen trading at 98.95, marginally higher by 0.10% today.