(Kitco News) - Gold prices are trading near session highs following the release of better-than-expected labor market data after the number of Americans filing new claims for unemployment benefits was lower than forecasted last week.
Initial claims for state unemployment benefits fell to a seasonally adjusted 233,000 for the week ending June 22, the Labor Department announced on Thursday. The number was better than expectations, as consensus estimates forecasted a reading of 236,000 claims. The previous week’s figure was revised up by 1,000 to 239,000.
The gold market is trading near session highs following the release of the labor market data, which came out at the same time as the May durable goods report and final Q1 GDP. Spot gold last traded at $2,317.89 per ounce, up 0.85% on the day.
Meanwhile, 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 236,000, up from the previous week's revised average of 233,000.
Continuing jobless claims, which represent the number of people already receiving benefits, were at 1.839 million during the week ending June 15, against expectations for a 1.820 reading and the previous week’s revised 1.821 million level.
Markets are paying close attention to the labor market, which remains a critical factor for the Federal Reserve’s monetary policy. Economists note that a tight labor market will increase wage inflation, adding to broadly higher consumer prices.
