Gold Holds Ground Amid Strong Labor Market

The gold market is holding its ground despite facing potential headwinds from a strong US labor market. Initial claims for state unemployment benefits came in at a seasonally adjusted 297,000 for the week ending September 26, according to the Labor Department. This figure was slightly better than expectations.

Analysts note that a stable labor market gives the Federal Reserve room to raise interest rates at next week's monetary policy meeting. Expectations of at least one more rate hike before the end of the year are supporting U.S. 10-year yields near 5.30%, their highest level in nearly 20 years.

Despite these headwinds, gold is not seeing any major reaction to the positive employment data. Spot gold last traded at $4,182.50 per ounce, up 0.65% on the day.