(Kitco News) - Gold prices are trading at session lows and testing support at $2,700 per ounce following the release of worse-than-expected labor market data after the number of Americans filing new claims for unemployment benefits came in above economists’ forecasts.
Initial claims for state unemployment benefits rose to a seasonally adjusted 242,000 for the week ending December 7, the Labor Department announced on Thursday. The number was higher than expectations, as consensus estimates forecasted a reading of 221,000 claims. The previous week’s figure was unrevised at 224,000.
Gold prices slid to session lows after the 8:30 am EDT data release. Spot gold last traded at $2,702.96 for a loss of 0.56% 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 224.250 against expectations for a 219,000 print, and also above the previous week's revised average of 218,500.
Continuing jobless claims, which represent the number of people already receiving benefits, were at 1.886 million during the week ending November 30, higher than the expected 1.870 million reading and also above the previous week’s unrevised 1.871 million level.
