US Jobless Claims Fall to 194000 as Gold Faces Selling Pressure

US unemployment benefit applications fell to 194000 for the week ending October 17, 2026, as employers continued to limit layoffs despite sluggish hiring. The Labor Department reported the seasonally adjusted figure on Thursday, October 22, below economists' expectations and near levels last seen in the late 1960s, while the resilient labor market added pressure to gold prices.

The latest claims total was down from the previous week's revised 200000, according to the Labor Department. The four-week moving average declined to 197750 from the previously revised 198500, indicating that initial applications remained low despite uncertainty about the broader employment outlook.

According to CNBC, claims have averaged 212000 over the past year. The latest reading was also close to the 189000 recorded for the week ending July 18, the lowest level since the late 1960s.

However, limited layoffs have not translated into strong job creation. US nonfarm payrolls increased by just 29000 in September, while monthly employment growth averaged 69000 in 2026. The unemployment rate rose to 4.2%, largely because labor force participation increased sharply, according to the employment figures cited by CNBC.

Bureau of Labor Statistics data released September 29 showed that layoffs declined by 61000 in August. Over the preceding 12 months, the layoff rate fell to 1% of the workforce, down 0.2 percentage point, while job openings remained relatively flat.

Despite signs of labor market resilience, continuing claims rose to 1.728 million, according to Kitco News. The figure suggests that workers receiving unemployment benefits may be taking longer to find new jobs, highlighting the contrast between low layoffs and slower hiring.

Waleed Said, a technical analyst at GivTrade, linked the employment figures and persistent inflation to the Federal Reserve's policy outlook.

"Layoffs aren’t picking up, and after PPI at 6.3% that gives the Fed no reason to ease," said Waleed Said, Technical Analyst at GivTrade.

Said also pointed to the increase in continuing claims as evidence that conditions remain difficult for displaced workers. He said the combination of limited layoffs and slowing recruitment reflects the constraints facing the US labor market.

Gold traded below $4100 an ounce as the employment report reinforced concerns that the Federal Reserve would maintain a restrictive monetary policy. Kitco News reported spot gold at $4076 an ounce, down 1.5% on the day, after prices recovered from their session lows during European trading.

Said described the relationship between employment, interest rates and geopolitical uncertainty as a major influence on the precious metal.

"A strong labor print plus a hawkish Fed is pressuring gold even with a war going on, and that tells you rates are driving the market right now," he said.

Monte Safieddine, head of market research at Capital.com, identified $4000 an ounce as a critical support level for gold. He said a sustained break below that threshold could signal a shift in market expectations toward persistent inflation, higher yields and a stronger US dollar.

Safieddine also warned that escalating geopolitical tensions could push oil prices higher, adding to inflation pressures and limiting the central bank's room to reduce interest rates. In that scenario, higher crude prices and bond yields could initially weigh on gold despite demand for defensive assets.

Federal Reserve officials are scheduled to announce their next interest rate decision the following week. According to CNBC, policymakers have increasingly focused on inflation, which remains above the central bank's 2% target, while markets expect no rate increase in October and anticipate a quarter-percentage-point increase in December.