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Gold Prices At $1,200 As U.S. Durable Goods Miss Expectations, Falling 1.7% In July

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(Kitco News) - Gold prices have pushed to session highs at the critical psychological level of $1,200 following weaker than expected manufacturing data.

Friday, the U.S. Census Bureau said that new durable goods orders dropped by $4.3 billion or 1.7% to $246.9 billion, in July, missing expectations. Consensus forecasts were calling for a decline of 0.7%.

Core durable goods, which strips out the volatile transportation sector was also weaker than expected, increasing 0.2% last month. Consensus forecasts were calling for a 0.5% increase. June's core data was also revised down to a rise of 0.2%.

Gold prices had been trending higher through the early morning session after holding support around $1,190 an ounce overnight. December gold futures last traded at $1,200 an ounce, up 0.50% on the day.

Despite the weaker-than-expected headline data, many economists are focusing on core capital goods orders increased by 1.4%. Avery Shenfeld, senior economist at CIBC World Markets, said that the data highlights continued growth in business investment.

"Overall, the soft headline masks a solid report in the details, which are supportive for capital spending as a contributor to growth in Q3, where we are looking for an overall GDP gain of 3%," he said.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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