Gold has lost ground on Wednesday, as this week's downward spin continues. In the European session, the spot price stands at $1240.85 per ounce, its lowest level since early June. Today's highlight is Unemployment Claims. The estimate stands at 306 thousand, slightly higher than last week's reading of 302 thousand.
US numbers continue to point to a deepening recovery, but the labor market is showing some troubling signs. JOLTS Job Openings was unchanged in August at 4.67 million, short of the estimate of 4.72 million. On Friday, the eagerly-anticipated Nonfarm Employment Change crashed to 142 thousand, its lowest gain since January. This surprised the markets, which had expected a gain of 226 thousand. Unemployment Claims fell short of the estimate last week and another weak reading on Thursday could temper the dollar's impressive rally.
After months of fighting in eastern Ukraine between government forces and pro-Russian fighters, a ceasefire which began on Friday appears to be holding up, although some sporadic fighting has been reported. Russia has denied assisting the rebels, but both Ukraine and NATO have said that Russian forces have aided the separatists and attacked government positions. The crisis has severely strained relations between the West and Russia, and trade between Europe and Russia has suffered as a result. European countries have already implemented sanctions against Russia and have threatened further sanctions if the latest ceasefire does not hold.
XAU/USD 1240.85 H: 1250.16 L: 1238.23
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