(Kitco News) - Gold prices set 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 while continuing claims rose.
Initial claims for state unemployment benefits fell to a seasonally adjusted 227,000 for the week ending October 19, the Labor Department announced on Thursday. The number was lower than expectations, as consensus estimates forecasted a reading of 242,000 claims. The previous week’s figure was 241,000.
The gold market shot up to session highs following the release of the labor market data, with spot gold last trading at $2,739.17 per ounce for a gain of 0.87% 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 238,500 against expectations for a 236,250 print, and slightly higher than the previous week's average of 238,000.
Continuing jobless claims, which represent the number of people already receiving benefits, were at 1.897 million during the week ending October 12, higher than the expected 1.880 million reading and also above the previous week’s 1.867 million level.
