Gold prices fall to session lows after U.S. weekly jobless claims drop to 221k

(Kitco News) – Gold prices slid to session lows following the release of better-than-expected labor market data after the number of Americans filing new claims for unemployment benefits was below economists’ forecasts.

Initial claims for state unemployment benefits came in at seasonally adjusted 221,000 for the week ending July 12, the Labor Department announced on Thursday. The number was better than expectations, as consensus estimates forecasted a reading of 235,000 claims. The previous week’s figure was 228,000.

Spot gold fell to session lows following the 8:30 am EDT data, and last traded at $3,317.86 per ounce for a loss of 0.89% 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 229,500 against expectations for a 237,000 reading, and following the previous week’s revised average of 235,750.

Continuing jobless claims, which represent the number of people already receiving benefits, were at 1.956 million during the week ending July 5, lower than the expected 1.970 million reading but above the previous week’s revised 1.954 million level.