(Kitco News) - Gold prices set fresh session highs following the release of relatively in-line labor market data after the number of Americans filing new claims for unemployment benefits last week was slightly lower than forecasted, while continuing claims ticked higher.
Initial claims for state unemployment benefits rose to a seasonally adjusted 228,000 for the week ending October 5, the Labor Department announced on Thursday. The number was slightly lower than expectations, as consensus estimates forecasted a reading of 230,000 claims. The previous week’s figure was 225,000.
The gold market shot up to session highs following the labor market data, which was released at the same time as U.S. CPI for September. Spot gold rose from $2,613 per ounce just before the 8:30 am EDT release to a fresh session high of $2,624.63 in the moments afterward. It last traded at $2,621.90 per ounce for a gain of 0.53% 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 231,000 against expectations for a 225,000 print, and also higher than the previous week's average of 224,250.
Continuing jobless claims, which represent the number of people already receiving benefits, were at 1.861 million during the week ending September 28, well above expectations for a 1.829 million reading and also higher than the previous week’s revised 1.819 million level.
