(Kitco News) - Gold prices are testing support at $2,600 per ounce following the release of better-than-expected labor market data after the number of Americans filing new claims for unemployment benefits came in below economists’ forecasts.
Initial claims for state unemployment benefits fell to a seasonally adjusted 220,000 for the week ending December 14, the Labor Department announced on Thursday. The number was better than expectations, as consensus estimates forecasted a reading of 230,000 claims. The previous week’s figure was unrevised at 242,000.
The gold market was testing the $2,600 support level prior to the 8:30 a.m. EST release, and the yellow metal continued to do so in the minutes afterward. Spot gold last traded at $2,600.55 per ounce for a gain of 0.58% on the session.
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 225,500 against expectations for a 220,000 print, and also above the previous week's unrevised average of 224.250.
Continuing jobless claims, which represent the number of people already receiving benefits, were at 1.874 million during the week ending December 7, lower than the expected 1.890 million reading and also below the previous week’s revised 1.879 million level.
