The number of Americans filing for unemployment benefits increased slightly more than expected last week, though the four week average dropped 4,000 to 241,000, weakest level since 1973, official figures revealed on Thursday. Last week's results were driven by growing economy and tight labor market, which is likely to prompt companies to retain experienced workers, supporting wage growth. According to the US Department of Labor, national jobless claims rose 6,000 to 244,000 during the week ended February 17 from the preceding week's upwardly revised 238,000. Meanwhile, economists anticipated an acceleration to 242,000 during the reported period. Filings have been holding below 300,000 for 103 straight weeks, showing healthy signs of the US job market.
In the meantime, continuing claims fell 17,000 to 2.06 million during the week ended February 11, while their four-week moving average dropped 10,750. Overall, the Federal Reserve is widely expected to increase interest rates fairly soon, with labor market and inflation data set to reveal better performance. The last time the Fed raised its benchmark overnight rate was in December last year, when the rate was increased from 0.5% to 0.75%.
Upcoming events: Two minor data releases in US
The fundamental events in the US today will be, for the most part, not very significant and are not likely to affect the price of the yellow metall. The two data releases that are planned for today are US New Home Sales and Revised UoM Consumer Sentiment scheduled for 15:00 GMT.
Gold breaks out of triangle
Daily chart: As forecasted and mentioned for the past week by the Dukascopy research team, the yellow metal has broken out of a triangle pattern and surged. The bullion has reached and even surpassed the 1,250 mark, about which speculations have been roaming around the markets for the past few months. On Friday the metal was not done with its move higher, as the 50.00% Fibonacci retracement level at 1,248.96 was broken, and with that the bullion set its path to the 1,258.50 mark, where the weekly R2 is located at.Traders remain bullish
Spreads (avg,pip) / Trading volume / Volatility
Market participants foresee the price of Gold being around 1,250 in May
Traders who were asked regarding their longer-term views on gold between January 24 and February 24 expect, on average, to see the metal near 1,250 in May. Generally, 63% (+2%) of participants believe the price will be above 1,250 in ninety days. Alongside, 28% (-3%) of those surveyed reckon the currencies will trade in the range between 1,000 and 1,200 over the next three months.