Claims for state unemployment benefits declined by 6,000 in the week ending October 31, the Labor Department said Thursday. The seasonally adjusted total was the lowest since late July; consensus estimates had projected claims would rise to 197,000.

Spot gold was last at $4,120.60 an ounce, up 1.5% on the day. Despite the metal’s resilience after the report, analysts say it faces significant headwinds. The Federal Reserve has said a healthy labor market allows it to remain focused on bringing inflation down to its 2% target, and the latest claims data may leave the central bank room to raise interest rates in December.

Friday’s government Nonfarm Payrolls report is the next major test for markets. Economists expect the U.S. economy to have added 65,000 jobs last month.