The Labor Department reported 194,000 seasonally adjusted claims for the week ending October 24, outperforming market expectations of 198,000. This sustained streak of low unemployment filings—the longest since January 2023—provides the Federal Reserve with significant maneuvering room to maintain its hawkish stance. While the central bank opted to keep interest rates unchanged on Wednesday, officials underscored a continued commitment to curbing inflation to the 2% target.

Investors have since pulled back from gold positions, wary that the robust employment data increases the likelihood of a rate hike this December. Spot gold was last trading at $4,024.30 an ounce. Analysts suggest that until the labor market shows signs of cooling, the metal will face persistent headwinds as the prospect of higher borrowing costs dampens its appeal as a non-yielding asset.