U.S. weekly jobless claims drop by 1k to 194,000, gold price falls

TORONTO (Feb 16)The initial weekly jobless decreased by 1,000 to 194,000 in the week to Saturday, surprising the markets with a slight drop.

Economists’ consensus calls projected for initial claims to rise to 200,000 from the previous week’s revised level of 195,000. 

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 – rose by 500 to 189,500. The previous week's four-week moving average was revised down by 250 to 189,000, the U.S. Labor Department said on Thursday.

Continuing jobless claims, which represent the number of people already receiving benefits, were at 1,696,000 during the week ending February 4, an increase of 16,000 from the previous week's revised level of 1,680,000. The previous week's level was revised down by 8,000.

The four-week moving average rose to 1,673,000, an increase of 10,250. And the previous week's four-week moving average was revised down by 2,000 to 1,662,750.

Traders watch the jobless claims data very closely to gauge its impact on the Federal Reserve's employment side of the monetary policy mandate.

Gold dropped to new daily lows after the data release, with April Comex gold futures last trading at $1,840.80, down 0.24% on the day. Markets were also digesting the Producer Price Index, Philadelphia Fed manufacturing index, and housing starts data published at the same time.

Kitco