(Kitco News) - Gold prices slid sharply lower following the release of better-than-expected labor market data after the number of Americans filing new claims for unemployment benefits was lower than economists’ forecasts.
Initial claims for state unemployment benefits came in at seasonally adjusted 218,000 for the week ending September 20, the Labor Department announced on Thursday. The number was better than expectations, as consensus estimates forecasted a reading of 235,000 claims. The previous week’s figure was revised to 232,000.
Spot gold fell sharply following the 8:30 am EDT data, and last traded at $3,737.68 per ounce for a slight gain of 0.04% 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 237,500 following the previous week's revised average of 240,250.
Continuing jobless claims, which represent the number of people already receiving benefits, were at 1.926 million during the week ending September 13, lower than the expected 1.930 million reading and the previous week’s revised 1.928 million level.
