U.S. weekly jobless claims drop to 190,000

(Kitco News) The initial weekly jobless decreased by 15,000 to 190,000 in the week to Saturday, surprising the markets with the decline.

Economists’ consensus calls projected for initial claims to rise to 214,000 from the previous week’s unrevised level of 205,000.

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 – declined to 206,000. The previous week’s four-week moving average was unrevised at 212,500, the U.S. Labor Department said on Thursday.

Continuing jobless claims, which represent the number of people already receiving benefits, were at 1,647,000 during the week ending January 7, an increase of 17,000 from the previous week’s revised level of 1,630,000.

The four-week moving average dropped to 1,673,000, a decline of 5,500. And the previous week’s four-week moving average was revised down to 1,678,500.

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 up slightly following the data release. February Comex gold futures were last trading at $1,913.60, up 0.35% on the day.