Gold prices fell to new session lows as the number of American workers applying for first-time unemployment benefits fell sharply during the last week of 2023.
On Thursday, the U.S. Labor Department said that weekly jobless claims increased by 18,000 to 202,000 during the week ending Dec. 30, down from the previous week's revised estimate of 220,000 claims.
The number was higher than the consensus forecast, as economists were expecting to see jobless claims pull back slightly to 216,000.
The gold market sold off somewhat in response to the latest employment data, with spot gold falling from $2,045.15 in the minutes before the release to fresh session lows of 42,039.12 immediately afterward, and is near flat 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 207,750, also down from the previous week's revised average of 212,500.
Continuing jobless claims, which represent the number of people already receiving benefits, were at 1.855 million during the week ending Dec. 23, 31,000 below the previous week's revised level of 1.886 million, and below the expected 1.883 million.
