Gold price weighed down by strong rise in U.S. durable goods
(Kitco News) - Stronger-than-expected momentum in the U.S. manufacturing sector is expected to weigh on gold prices even as the market struggles to find upside traction.
Wednesday the Commerce Department said that U.S. durable-goods orders increased by $23.2 billion or 11.2% in July, up from June’s revised 7.7% increase. The data was much better than expected; consensus expectations compiled by various news organizations called for durables good to increase 4.4%.
Excluding transportation, new orders increased 2.4% the government said. Core durable goods orders were much better than expected as economists were calling for a 1.9% rise.
The gold market has seen some modest selling pressure as prices trade in negative territory. December gold futures last traded at $1,911.39 an ounce, down 0.63% on the day.
"The revisions higher in core capital goods along with a solid headline number show a decent economic recovery; but this is much more in-line than the headline would indicate," said Adam Button, chief currency strategist at Forexlive.com
The better-than-expected data have pushed the U.S. dollar index to its session highs, which is taking its toll on gold prices.