Gold prices have surged to new session highs following the release of better-than-anticipated labor market data. Initial claims for state unemployment benefits fell to a seasonally adjusted 227,000 for the week ending August 31, according to the Labor Department. This figure was lower than the forecasted 230,000 claims and improved from the previous week’s revised figure of 232,000.
In response to the labor market report, gold prices have climbed to over $2,520 per ounce, with spot gold last trading at $2,521.62, marking a 1.04% increase on the day.
The four-week moving average for new claims, which smooths out weekly fluctuations and is considered a more stable measure of labor market trends, came in at 230,000. This was slightly above expectations of 229,000 but below the previous week’s revised average of 231,750.
Continuing jobless claims, reflecting the number of individuals still receiving unemployment benefits, were reported at 1.838 million for the week ending August 24. This was lower than the expected 1.870 million and also below the previous week’s revised figure of 1.860 million.
As the labor market remains a key focus for the Federal Reserve’s monetary policy, economists are increasingly anticipating a rate cut in September. However, there is still debate over whether this reduction will be 25 or 50 basis points.
