(Kitco News) - Gold prices rose sharply following the release of worse-than-expected labor market data after the number of Americans filing new claims for unemployment benefits was well above economists’ forecasts.
Initial claims for state unemployment benefits came in at seasonally adjusted 235,000 for the week ending August 16, the Labor Department announced on Thursday. The number was higher than expectations, as consensus estimates forecasted a reading of 225,000 claims. The previous week’s figure was unrevised at 224,000.
Spot gold rose back toward session highs following the 8:30 am EDT data, and last traded at $3,343.07 per ounce for a loss of 0.16% 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 226,250 following the previous week's unrevised average of 221,750.
Continuing jobless claims, which represent the number of people already receiving benefits, were at 1.972 million during the week ending August 9, higher than the expected 1.960 million reading and the previous week’s downwardly revised 1.942 million level.
