(Kitco News) - Gold prices are pulling back from session highs following the release of better-than-expected labor market data after the number of Americans filing new claims for unemployment benefits last week was lower than forecasted.
Initial claims for state unemployment benefits fell to a seasonally adjusted 227,000 for the week ending August 10, the Labor Department announced on Thursday. The number was better than expectations, as consensus estimates forecasted a reading of 235,000 claims. The previous week’s figure was revised to 234,000.
The gold market is giving back some gains following the release of the labor market data, which came out at the same time as the July retail sales report. Spot gold last traded at $2,454.70 per ounce, up 0.28% 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 – fell to 236,500, down from the previous week's average of 241,000.
Continuing jobless claims, which represent the number of people already receiving benefits, were at 1.864 million during the week ending August 3, against expectations for a 1.880 million reading and the previous week’s revised 1.871 million level.
Markets are paying close attention to the labor market, which remains a critical factor for the Federal Reserve’s monetary policy. Economists are fully pricing in a September rate cut, but the size is still in question.
