(Kitco News) - Gold prices are rallying to fresh 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 31, the Labor Department announced on Thursday. The number was lower than expectations, as consensus estimates forecasted a reading of 230,000 claims. The previous week’s figure was revised upward by 1,000 to 232,000.
The gold market is trading at fresh session highs above $2,520 per ounce following the labor market data release. Spot gold last traded at $2,521.62 per ounce, up 1.04% 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 – came in at 230,000 against expectations for a 229,000 print, but lower than the previous week's revised average of 231,750.
Continuing jobless claims, which represent the number of people already receiving benefits, were at 1.838 million during the week ending August 24, well below expectations for a 1.870 million reading and also below the previous week’s downwardly revised 1.860 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.
