Gold prices at session highs after U.S. weekly jobless claims rise to 240k

(Kitco News) – Gold prices are trading at session highs following the release of worse-than-expected labor market data after the number of Americans filing new claims for unemployment benefits was above economists’ forecasts.

Initial claims for state unemployment benefits came in at seasonally adjusted 240,000 for the week ending May 24, the Labor Department announced on Thursday. The number was well above expectations, as consensus estimates forecasted a reading of 230,000 claims. The previous week’s figure was unrevised at 226,000.

Gold prices rose to session highs following the 8:30 a.m. EDT release, with spot gold last trading at $3,313.04 per ounce for a gain of 0.74% 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 230,750 against expectations for a 233,000 reading, and following the previous week’s revised average of 231,000.

Continuing jobless claims, which represent the number of people already receiving benefits, were at 1.919 million during the week ending May 17, higher than the expected 1.900 million reading and above the previous week’s revised 1.893 million level.