Gold Faces Further Losses Amid Resilient US Labor Market
The gold market remains under pressure due to the U.S. labor market's resilience, with initial claims for state unemployment benefits coming in at a seasonally adjusted 197,000 for the week ending September 19.
This number is slightly below expectations, which forecasted a reading of 201,000 claims. The previous week's figure was revised slightly higher to 198,000 claims.
The gold market is not reacting much to this latest employment data, with spot gold last trading at $4,264.40 an ounce, down 0.50% on the day. The precious metal continues to struggle below $4,300 an ounce as the U.S. 10-year Treasury yield rises to 5.11%, its highest level in 20 years.
Persistent inflation pressures continue to drive bond yields higher, forcing the Federal Reserve to maintain its tightening bias. Analysts note that the latest employment data could weigh on gold, giving the Federal Reserve more room to raise interest rates.