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