Gold prices are holding on to support around $1,900 but is seeing some renewed selling pressure as fewer American workers than expected applied for unemployment benefits.
Thursday, the Labor Department said that 787,000 million Americans filed for first-time U.S. jobless claims in the week to Saturday, a decrease of 55,000 from the previous week’s revised level. The previous week’s level was revised down by 56,000 from 898,000 to 842,000.
The latest labor market data significantly beat expectations with consensus forecasts calling for claims to come in around 860,000. The better than expected data is helping to keep some pressure on gold prices. December gold futures last traded at $1,905.80 an ounce, down more than 1.2% on the day.
This is the lowest reading in weekly jobless claims since the U.S. labor market was decimated because of the COVID-19 pandemic. However, economists also noted that jobless claims are still well above the pre-pandemic record level of 671,000.