The gold market remains under pressure, yet selling momentum has not accelerated, even as the latest U.S. labor data surprises on the upside. Investors are watching closely as initial jobless claims fall sharply, but gold continues to trade near key technical levels.
U.S. Labor Market Shows Unexpected Strength
The U.S. Labor Department reported that initial claims for state unemployment benefits totaled 191,000 for the week ending November 29, down 27,000 from the previous week’s revised figure of 218,000. This was notably better than the expected 219,000 claims, marking the lowest initial claims level since September 24, 2022, when 189,000 claims were recorded.
Meanwhile, the four-week moving average for new claims, often considered a more reliable indicator of labor market trends, came in at 214,750, a decrease of 9,500 from the prior week. Continuing jobless claims also fell slightly to 1.939 million, down from 1.943 million the previous week.
Some analysts caution that holiday-related factors, such as Thanksgiving, may have affected the weekly data. Private-sector reports also paint a slightly different picture, with payroll processor ADP noting 32,000 jobs lost in November and a small slowdown in wage growth.
Gold Prices React to Technical Levels
Despite the stronger-than-expected labor data, gold prices have remained relatively stable. Spot gold last traded at $4,194 per ounce, down 0.19% on the day. The metal is facing technical selling pressure after failing to hold gains above initial resistance at $4,200 an ounce.
Investors are closely monitoring how gold behaves around these levels, as the market balances labor market optimism with broader economic uncertainty and safe-haven demand.
Interest Rate Expectations and Gold
The recent jobless claims report has not significantly influenced interest rate expectations ahead of the upcoming Federal Reserve monetary policy meeting. Markets currently price in an 89% chance of a rate cut following the final Fed meeting of 2025, keeping gold in focus as traders anticipate potential shifts in monetary policy.
Key Takeaways
- Initial U.S. jobless claims fell to 191,000, the lowest since September 2022.
- Spot gold is trading near $4,194 per ounce, facing technical resistance at $4,200.
- Four-week moving averages and continuing claims show a modest improvement in the labor market.
- Markets still expect a high likelihood of a Fed rate cut, keeping gold on investors’ radar.
Gold remains a safe-haven asset as markets digest mixed signals from labor data, private-sector reports, and interest rate expectations.
