Gold prices climbed back above $850 an ounce in Thursday's trading as more disappointing jobs data pushed traders toward the safe haven. The precious metal's hedge appeal was boosted by a slumping U.S. dollar.
December gold rose to $854.50, up $12.80 for the session. The metal hit as high as $865.30 after earlier falling as low as $87.63.
The greenback fell to a three-week low against the pound and also found near-term lows against the euro and yen. Gold usually moves opposite the dollar as traders tend to turn to the precious metal as a safety outlet.
On the economic front, a report released by the Labor Department showed first-time claims for unemployment benefits fell unexpectedly declined in the week ended Jan. 3. Jobless claims fell to 467,000 from the previous week's revised figure of 471,000. Economists had been expecting a increase in claims to 550,000 from the originally reported figure of 472,000 for the previous week.
The Labor Department also said that the less volatile four-week moving average fell to 525,750 from the previous week's unrevised average of 552,750.
Meanwhile, President-elect Barack Obama put pressure on Congress to pass his economic stimulus package Thursday, warning. He recognized the severe crisis he is inheriting in less than two weeks, as the countdown to his inauguration on January 20 winds down.
Gold's hedge appeal was limited as crude oil drifted lower. Light sweet crude for February delivery finished at $41.70, down 93 cents for the day.
