(Kitco News) - Gold prices continue to trade above $4,800 an ounce, but are not attracting any solid bullish momentum as the U.S. labor market remains fairly resilient, with the number of workers applying for first-time unemployment benefits falling more than expected.
Initial claims for state unemployment benefits fell by 11,000 to a seasonally adjusted 207,000 for the week ending April 11, the Labor Department announced on Thursday. The number was below expectations, as consensus estimates forecasted a reading of 213,000 claims. The previous week’s figure was revised down by 1,000 claims to 218,000.
Overnight gold prices managed to push back above a key support level at $4,800 and have managed to hold their ground in their initial reaction to the better-than-expected labor market data. Spot gold last traded at $4,815.80 an ounce, up 0.54% on the day.
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 209,750 following the previous week's revised average of 209,250.
Continuing jobless claims, which represent the number of people already receiving benefits, were at 1.818 million during the week ending April 4, up from the previous week’s revised level of 1.787 million.
