(Kitco News) - Gold prices were coming off session highs above $4,170 per ounce 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 216,000 for the week ending November 22, the Labor Department announced on Wednesday. The number was lower than expectations, as consensus estimates forecasted a reading of 225,000 claims. The previous week’s figure was revised up to 222,000.
Spot gold pulled back from session highs following the 8:30 am EDT data, and last traded at $4,154.91 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 223,750 following the previous week's average of 224,750.
Continuing jobless claims, which represent the number of people already receiving benefits, were at 1.960 million during the week ending November 15, higher than the previous week’s revised 1.953 million level but below the 1.974 million expected.
Eric Teal, Chief Investment Officer for Comerica Wealth Management, told Kitco News the Trump administration's immigration policies are not yet fully reflected in the jobless claims data.
"The policies will likely boost employment and wages in several industries like construction and hospitality," he said. "A significant amount of rate cuts will be needed to stimulate the economy and continue the positive market momentum but we’re closely monitoring the inflation data for signs of a “second wave."
