Gold Faces Pressure from Strong US Labor Data and Rate Hike Outlook

The gold market keeps facing downward pressure from a resilient U.S. labor market. Initial unemployment claims totaled 197,000 for the week ending September 19, below the expected 201,000, with the prior week revised to 198,000. This strength gives the Federal Reserve room to raise rates further.

Spot gold fell 0.5% to $4,264.40 an ounce, staying below $4,300. The 10-year Treasury yield climbed to 5.11%, its highest level in two decades, amid persistent inflation.

The four-week moving average of new claims reached 202,250. Continuing claims edged up to 1.719 million from 1.717 million the week before. Analysts say the data could weigh further on gold prices.