(Kitco News) - Gold prices rocketed higher and reclaimed $4,100 on Thursday morning 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 came in at seasonally adjusted 215,000 for the week ending June 27, the Labor Department announced on Thursday. The number was below expectations, as consensus estimates forecasted a reading of 220,000 claims. The previous week’s figure was revised to 216,000 from 215,000.
Spot gold shot through $4,100 per ounce immediately after the data release, which came out at the same time as June’s nonfarm payrolls report, and last traded at $4,116.72 per ounce for a gain of 2.11% on the daily chart.
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 222,000 against expectations for 220,500.
Continuing jobless claims, which represent the number of people already receiving benefits, were at 1.814 million during the week ending June 20 against expectations for 1.810, and following the previous week’s downwardly revised 1.812 million level.
