(Kitco News) - The gold market remains stuck in neutral as momentum in the U.S. labor market remains strong with fewer Americans than expected applying for first-time unemployment benefits.
Thursday, the U.S. Labor Department said that weekly jobless claims fell by 6,000 to 222,000, down from the previous week's downwardly revised estimate of 232,000 claims.
According to consensus estimates, economists were looking for claims to rise to 234,000.
The better-than-expected economic data appears to be weighing on gold prices, as the market gives up its overnight gains. December gold futures last traded at $1,727.20 an ounce, roughly unchanged on the day.
The four-week moving average for new claims – often viewed as a more reliable measure of the labor market since it flattens week-to-week volatility – fell to 233,000 a drop of 7,500 claims from the previous week's revised average.
Continuing jobless claims, which represent the number of people already receiving benefits, were at 1.473 million during the week ending Aug 27, rising by 36,000 from the previous week's revised level.
