Gold prices holding support but look vulnerable as U.S. weekly jobless claims drop by 16k

NEW YORK (December 31) The gold market continues to hold support above $4,300, but the price action looks increasingly vulnerable, and better-than-expected labor market data could continue to put pressure on the precious metal.

Initial claims for state unemployment benefits dropped by 16,000 to a seasonally adjusted 199,000 for the week ending December 27, the Labor Department announced on Wednesday. The previous week’s data was revised up to 214,000 claims.

The latest labor market data significantly beat expectations as economists were looking for a relatively unchanged reading.  

The gold market is struggling to find its footing on the final trading day of 2025. Spot gold last traded at $4,333.10 an ounce, down 0.10% on the day.

Meanwhile, the four-week moving average for new claims – often viewed as a more reliable measure of the labor market since it smooths week-to-week volatility – came in at 218,750, an increase from the previous week's unrevised average of 216,750.

Continuing jobless claims, which represent the number of people already receiving benefits, were at 1.866 million during the week ending December 20, higher than the previous week’s revised 1.885 million level and the 1.900 million expected.

The advance number for seasonally adjusted insured unemployment during the week ending December 20 was 1.866 million, a decrease of 47,000 from the previous week's revised level of 1.913 million. 

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