(Kitco News) - Gold prices are approaching support at $2,500 per ounce 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 231,000 for the week ending August 24, the Labor Department announced on Thursday. The number was lower than expectations, as consensus estimates forecasted a reading of 234,000 claims. The previous week’s figure was revised upward by 1,000 to 233,000.
The gold market dipped closer to support at $2,500 following the labor market data release. Spot gold last traded at $2,511.46 per ounce, up 0.27% 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 231,500 against expectations for a 248,000 print, and also lower than the previous week's revised average of 236,250.
Continuing jobless claims, which represent the number of people already receiving benefits, were at 1.868 million during the week ending August 17, against expectations for a 1.878 million reading and the previous week’s downwardly revised 1.855 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 remain divided on whether it will be 25 or 50 basis points.
