Gold prices surged to new session highs following the release of U.S. labor market data that was largely in line with expectations. The report revealed that the number of Americans filing new claims for unemployment benefits last week was slightly lower than anticipated, although continuing claims increased.
The Labor Department reported that initial claims for state unemployment benefits rose to a seasonally adjusted 228,000 for the week ending October 5. This figure was slightly below the consensus estimate of 230,000 and represented an increase from the previous week’s total of 225,000.
In response to the labor market data, the gold market spiked, with spot gold rising from $2,613 per ounce just before the 8:30 AM EDT announcement to a new session high of $2,624.63 shortly afterward. As of the latest trading, gold was priced at $2,621.90 per ounce, marking a 0.53% increase for the day.
Additionally, the four-week moving average for new claims, which is often considered a more reliable indicator of labor market trends due to its smoothing of week-to-week fluctuations, stood at 231,000. This figure exceeded expectations for a 225,000 average and was higher than the previous week’s average of 224,250.
Continuing claims, which indicate the number of individuals already receiving unemployment benefits, rose to 1.861 million for the week ending September 28. This number surpassed expectations of 1.829 million and was also higher than the revised level of 1.819 million reported for the previous week.
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