(Kitco News) - Gold prices were recovering from a sudden selloff on Thursday morning following the release of in-line labor market data after the number of Americans filing new claims for unemployment benefits was slightly lower than economists’ forecasts.
Initial claims for state unemployment benefits came in at seasonally adjusted 213,000 for the week ending February 28, the Labor Department announced on Thursday. The number was lower than expectations, as consensus estimates forecasted a reading of 215,000 claims. The previous week’s figure was revised up to 213,000 from 212,000.
Spot gold saw a sharp selloff to a session low of $5,081.23 a few minutes before the 8:30 am release, but it reclaimed more than half its losses in the minutes that followed, and last traded at $5,130.45 per ounce for a loss of 0.20% 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 215,750 following the previous week's revised average of 220,500, and against expectations for 222,000.
Continuing jobless claims, which represent the number of people already receiving benefits, were at 1.868 million during the week ending February 21, higher than the previous week’s revised 1.822 million level and the 1.850 million expected.
