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Gold prices holding above $1,900 as U.S. unemployment claims drop more than expected

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(Kitco News) - The U.S. Labor market continues to slowly improve a fewer workers applied for weekly unemployment benifets than expected.

Thursday, the Labor Department said that 837,000 Americans filed for first-time U.S. jobless claims in the week to Saturday a decrease of 36,000 from the previous week's revised level. The previous week's level was revised up by 3,000 to 870,00.

This is the lowest reading in unemployment claims since the economy was devastated by the COVID-19 pandemic. According to consensus estimates, economists were expecting claims to come in around 850,000.

The better-than-expected labor market data is not having much impact on the gold markets as prices hold above $1,900 an ounce in initial reaction to the data.

Although weekly unemployment benefits continue to inch lower, economists have said that  the labor market still has a significant ways to go to reach the levels seen back in February.

The four-week moving average for new claims – often viewed as a more reliable measure of the labor market since it smooths out week-to-week volatility – was by 867,250, down 11,750 claims from the previous week.

Continuing jobless claims, the number of people already receiving benefits and reported with a one-week delay, fell to 11.767 million, for the week ending Sept. 19. Continuing claims fell by 980,000 claims from the previous week, the government said.

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