(Kitco News) - Gold prices were trending higher following the release of worse-than-expected labor market data after the number of Americans filing new claims for unemployment benefits was higher than economists’ forecasts.
Initial claims for state unemployment benefits came in at seasonally adjusted 227,000 for the week ending February 7, the Labor Department announced on Thursday. The number was higher than expectations, as consensus estimates forecasted a reading of 222,000 claims. The previous week’s figure was revised up to 232,000.
Spot gold was approaching the upper edge of its recent range following the 8:30 am EST data after opening sharply lower overnight, and last traded at $5,076,47 per ounce for a loss of 0.15% on the session.
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 219,500 following the previous week's average of 212,500, and against expectations for 214,000.
Continuing jobless claims, which represent the number of people already receiving benefits, were at 1.862 million during the week ending January 31, higher than the previous week’s revised 1.841 million level and the 1.850 million expected.
