Spot gold trades at $4,860/oz after U.S. weekly jobless claims spike to 231k

NEW YORK (February 5) Gold prices were trading near session lows following the release of worse-than-expected labor market data after the number of Americans filing new claims for unemployment benefits was higher than economists’ forecasts.

Initial claims for state unemployment benefits came in at seasonally adjusted 231,000 for the week ending January 31, the Labor Department announced on Thursday. The number was higher than expectations, as consensus estimates forecasted a reading of 212,000 claims. The previous week’s figure was unrevised at 209,000. 

Spot gold continued to trade near session lows following the 8:30 am EST data, and last traded at $4,860.37 per ounce for a loss of 2.08% 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 212,250 following the previous week's average of 206,250, and against expectations for 210,000.

Continuing jobless claims, which represent the number of people already receiving benefits, were at 1.844 million during the week ending January 24, higher than the previous week’s revised 1.819 million level but lower than the 1.850 million expected.

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