(Kitco News) - The gold market remains firmly caught in a downtrend, with prices trading near critical long-term support levels. Even potentially slowing momentum in the labor market has not been enough to pull prices out of this tailspin.
Initial claims for state unemployment benefits came in at a seasonally adjusted 229,000 for the week ending June 6, an increase of 4,000, the Labor Department announced on Thursday. The figure was above expectations, as consensus estimates had forecast a reading of 220,000 claims. The previous week's figure was unrevised at 225,000.
The gold market is not seeing much reaction to the weaker-than-expected labor market data. The weekly increase in claims comes after strong employment growth in May. Despite some short-term volatility, analysts and economists note that the labor market remains relatively healthy.
Gold prices last traded at $4,067.90 an ounce, roughly unchanged on the day. Analysts are watching critical support at $4,000 an ounce very closely.
