Gold Prices Holding Above $1,300 Following Mixed Durable Goods Numbers
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(Kitco News) - Gold prices are holding above the critical psychological level of $1,300 an ounce as momentum in the U.S. manufacturing sector was mixed in January.
Wednesday, a U.S. Commerce Department report showed U.S. durable-goods orders increased by 0.4% in January, up from December’s 1.3% increase. The headline data was better than expected as economists were expecting a drop of 0.5%.
However, stripping out the volatile transportation sector, core durable goods orders dropped 0.1% in January. Economists were expecting to see an increase of 0.1%.
Core durable goods orders have missed expectations for the last seven straight months.
The gold market is seeing little reaction to the data but continues to hold recent gains. April gold futures last traded at $1,307.40 an ounce, up 0.71% on the day.
Avery Shenfeld, noted that core durable goods orders adds to the growing concerns of a slowing U.S. economy. He noted that non-defense capital goods ex-aircraft managed to record only it’s second positive figure in the past six months,
“That still leaves the last three months down 5.3% annualized from the prior 3 months, pointing to weakness in capital spending ahead,” he said.