Gold prices rise toward session highs after U.S. weekly jobless claims fall to 227k

(Kitco News) – Gold prices rose towards session highs 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 227,000 for the week ending July 5, 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 revised down to 232,000.

Spot gold rose following the 8:30 am EDT data, and last traded at $3,323.10 per ounce for a loss of 0.29% 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 235,500 against expectations for a 243,000 reading, and following the previous week’s revised average of 241,250.

Continuing jobless claims, which represent the number of people already receiving benefits, were at 1.965 million during the week ending June 28, lower than the expected 1.980 million reading but above the previous week’s downwardly revised 1.955 million level.