Gold prices are approaching a key support level of $2,500 per ounce following the release of stronger-than-expected U.S. labor market data. Initial claims for state unemployment benefits fell to 231,000 for the week ending August 24, according to the Labor Department, surpassing forecasts that had predicted 234,000 claims. The previous week’s figure was revised up by 1,000 to 233,000.
In response to the labor market report, gold prices edged closer to the $2,500 support level. As of the latest update, spot gold traded at $2,511.46 per ounce, reflecting a 0.27% increase on the day.
The four-week moving average for new claims, which smooths out weekly fluctuations to provide a clearer picture of labor market trends, dropped to 231,500. This figure was below expectations of 248,000 and also lower than the revised average of 236,250 from the previous week.
Continuing jobless claims, representing individuals currently receiving unemployment benefits, stood at 1.868 million for the week ending August 17. This was lower than the anticipated 1.878 million and below the revised figure of 1.855 million from the prior week.
These labor market figures are being closely monitored as they remain a key determinant for the Federal Reserve’s monetary policy decisions. While economists widely anticipate a rate cut in September, there is still debate over whether the reduction will be 25 or 50 basis points.
