(Kitco News) - Gold prices are pulling back from session highs 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 201,000 for the week ending January 4, the Labor Department announced on Wednesday. The number was below expectations, as consensus estimates forecasted a reading of 218,000 claims. The previous week’s figure was unrevised at 211,000.
The gold market was trading at session highs above $2,659 in the minutes before the 8:30 a.m. EST release, but pulled back immediately afterward. Spot gold last traded at $2,653.24 per ounce for a gain of 0.17% 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 213,000, also below the previous week's revised average of 223,250.
Continuing jobless claims, which represent the number of people already receiving benefits, were at 1.867 million during the week ending December 28, lower than the expected 1.870 million reading but above the previous week’s unrevised 1.844 million level.
