Gold prices are trading near session highs even as the U.S. labor market appears to stabilize as the number of American workers applying for first-time unemployment benefits rose much less than expected.
Thursday, the U.S. Labor Department said that weekly jobless claims increased by 2,000 to 205,000 during the week ending Dec. 16, up from the previous week's revised estimate of 203,000 claims.
According to consensus forecasts, economists were expecting to see jobless claims rise to around 214,000.
The healthy employment data is not having much impact on the gold market as prices consolidate below critical resistance at $2,050 an ounce. Spot gold prices last traded at $2,040.20 an ounce, up 0.43%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 – rose to 212,000, a decrease of 1,500 claims from the previous week's revised average of 213,500.
Continuing jobless claims, which represent the number of people already receiving benefits, were at 1.865 million during the week ending Dec. 9, falling by 1,000 from the previous week's revised level of 1.866 million.
Economists continue to watch the U.S. labor market closely as it is a key factor that will determine the Federal Reserve's monetary policy decision. The U.S. central bank has been clear that it won't shift its current tightening bias until they see further slack in the labor market.
