Gold prices are hovering near session highs following data indicating a significant pullback in the U.S. labor market last week.
The U.S. Labor Department reported on Thursday that initial claims for state unemployment benefits fell by 17,000 to a seasonally adjusted 233,000 for the week ending August 3. This figure came in lower than the consensus estimate of 240,000 claims. The previous week’s claims were revised up by 1,000 to 250,000.
Last week’s unemployment claims were at their highest level since August 2023.
Following the better-than-expected employment data, the gold market is trading just off session highs. Spot gold last traded at $2,410.38 per ounce, up nearly 1.16% on the day, and only $5 below the session high of $2,415.60 reached just minutes before the 8:30 am EDT release.
Meanwhile, the four-week moving average for new claims, which is considered a more reliable measure of labor market trends due to reduced week-to-week volatility, rose to 240,750, up from the previous week’s revised average of 238,250.
Continuing jobless claims, representing the number of people already receiving benefits, stood at 1.875 million for the week ending July 27. This was higher than the 1.870 million expected by economists and up by 6,000 from the previous week’s downwardly revised level of 1.869 million.
