Gold Holds $4,000 Spot After Core PCE and Unemployment Claims Data Released
Spot gold briefly surged above the $4,000 mark Thursday after core PCE data released with 0.3% rise for the month. Another important data includes initial jobless claims that came in at 215K, well below the 225K consensus forecast.
Spot gold briefly reclaimed the $4,000 an ounce level Thursday morning after two important news were released, which were the unemployment claims data and the core PCE data.
The Labor Department reported that initial state jobless claims totaled a seasonally adjusted 215K for the week that ends June 20, comfortably below the consensus forecast of 225K. The fact that core PCE data rose for 0.3% (which was in line with the market's expectation) was also reassuring for the gold price today.
The four-week moving average for unemployment claims, widely regarded as a more stable labor market indicator because it smooths out weekly swings, registered 224,250, also coming in under the anticipated 226K level.
Continuing claims, which track those already receiving unemployment assistance, stood at 1.821 million during the week ending June 13, marginally above the 1.800 million estimate.
The stronger-than-expected jobless claims, and the expected PCE inflation report provides gold a temporary lift as traders assessed the competing forces of economic resilience and lingering inflation concerns against the Federal Reserve's rate outlook.
Speaking about the released core PCE data today, chief economist at Navy Federal Credit Union Heather Long believes that people are currently spending more on gas, alongside their also-increasing spending on utilities and healthcare. The Fed chair Kevin Warsh has previously said that he is committed to pressure the inflation numbers in the U.S.
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