Gold Prices Ignore Weaker-Than-Expected U.S. Durable Goods Orders
(Kitco News) - Slowing momentum in the U.S. manufacturing sector is not helping to relieve any pressure in the gold market with prices relatively unchanged on the day.
Tuesday the U.S. Census Bureau said that new durable goods orders dropped by $4.2 billion or 1.6% to $250.3 billion, in February, down from January’s rise of 0.1%. The data missed expectations as consensus forecasts called for a drop of 1.1%.
Meanwhile core durable goods, which strips out the volatile transportation sector was also weaker than expected, increasing 0.1% in February. Consensus forecasts were calling for a 0.3% increase.
However the economic data is having little impact on gold prices as investors pay more attention to the U.S. dollar and equity markets. June gold futures last traded at $1,292.3 an ounce, down 0.15% on the day.
Katherine Judge, senior economist at CIBC World Market, noted that core capital goods orders suggest that business investment could be a drag on second-quarter growth.