Gold holds above $4,100 as jobless claims drop to July low

Gold prices are holding initial support above $4,100 an ounce, with Spot gold trading at $4,120.60, up 1.5% on the day. The precious metal remains resilient despite a stronger-than-expected U.S. Labor market report released by the Labor Department on Thursday.

Initial claims for state unemployment benefits fell by 6,000 to a seasonally adjusted 189,000 for the week ending October 31. This figure was better than consensus estimates, which had predicted a rise to 197,000, and marks the lowest level for weekly jobless claims since late July.

Analysts note that the healthy labor market gives the Federal Reserve room to maintain its focus on bringing inflation down to its 2% target, potentially allowing for interest rate hikes in December. Markets are now focused on the Nonfarm Payrolls report scheduled for release Friday, where economists expect the U.S. Economy to have created 65,000 jobs last month.

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