Gold Prices Drop As U.S. Weekly Jobless Claims Fall To 50-Year Low
(Kitco News) -Gold prices are trading near session lows as the U.S. labor market showed strong momentum, according to the latest weekly employment data from the Labor Department.
Initial weekly U.S. jobless claims significantly beat consensus forecasts after falling by 13,000 to a seasonally adjusted 199,000 in the week to Saturday, the department reported Thursday.
“This is the lowest level for initial claims since November 15, 1969 when it was 197,000,” the report said.
Gold prices had been under modest pressure ahead of the report and lost more ground in initial reaction to the lowest claims level in 50 years. February gold futures last traded at $1,276.80 an ounce, down 0.55% on the day.
Consensus expectations compiled by various news organizations had called for initial claims to be around 219,000. The government revised the prior week’s tally down by 1,000 to 212,000 jobs.
Meanwhile, the four-week moving average for new claims â€“ often viewed as a more reliable measure of the labor market since it smoothens out week-to-week volatility â€“ dropped by 5,500 claims to 215,000
Continuing jobless claims, the number of people already receiving benefits and reported with a one-week delay, dropped by 24,000 to a seasonally adjusted 1.713 million during the week ending Jan 12, the government said.