Gold prices fell more than 1.5% on Thursday after the U.S. Labor Department reported 194,000 initial jobless claims for the week ending October 17. Economists had forecast 200,000 claims. The reading marked a three-month low and suggested layoffs remained subdued despite higher interest rates.
The strong labor data reinforced expectations that the Federal Reserve would maintain tight monetary policy to combat inflation, reducing the urgency for interest-rate cuts. Higher rates increase the opportunity cost of holding non-yielding bullion. Spot gold fell below $4,100 per ounce and reached $4,060, its lowest level in more than two months.