Gold price ticks down as U.S. weekly jobless claims drop to 217,000

(Kitco News) The initial weekly jobless declined by 1,000 to 217,000 in the week to Saturday, surprising the markets with another sign that employment remains strong in the U.S.

Economists’ consensus calls projected for initial claims to come in at 220,000 following the previous week’s revised level of 218,000.

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 – decreased to 218,750. The previous week’s four-week moving average was revised to 219,250, the U.S. Labor Department said on Thursday.

Continuing jobless claims, which represent the number of people already receiving benefits, were at 1,485,000 during the week ending October 22, an increase of 47,000 from the previous week’s unrevised level of 1,438,000.

The four-week moving average rose to 1,417,500, an increase of 30,000. And the previous week’s four-week moving average was unrevised at 1,387,500.

Traders watch the jobless claims data very closely to gauge its impact on the Federal Reserve’s employment side of the monetary policy mandate.

Gold edged down in response, but was already under heavy pressure before the data was published. The precious metal was knocked down Thursday afternoon when Federal Reserve Chair Jerome Powell said that the "ultimate level" of interest rates would likely be higher than previously thought. He also said the window for a soft landing has "narrowed." In response, the U.S. dollar rose, and U.S. Treasuries climbed. December Comex gold futures were last trading at $1,621.50, down 1.73% on the day.