(Kitco News) - Gold prices are hovering near session highs as the latest data shows the U.S. labor market pulled back from the brink last week.
Initial claims for state unemployment benefits fell by 17,000 claims to a seasonally adjusted 233,000 for the week ending August 3, the Labor Department announced on Thursday. The number was lower than expectations, as consensus estimates forecasted a reading of 240,000 claims. The previous week’s figure was revised up by 1,000 claims to 250,000.
Last week’s unemployment claims were at their highest level since August 2023.
The gold market is trading just off session highs following the better-than-expected employment data. Spot gold last traded at $2,410.38 per ounce, up nearly 1.16% on the day and only $5 from the high of $2,415.60 set minutes before the 8:30 am EDT release.
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 240,750, up from the previous week's revised average of 238,250.
Continuing jobless claims, which represent the number of people already receiving benefits, were at 1.875 million during the week ending July 27, higher than the 1.870 expected by economists and up 6,000 from the previous week’s downwardly revised level of 1.869 million.
