Gold price holding steady as U.S. durable goods orders rise 1.9% in June
(Kitco News) - The gold market remains stuck in neutral, holding solid support above $1,700 an ounce even as the U.S. manufacturing sector sees strong-than-expected activity in June.
Wednesday, the Commerce Department said that U.S. durable-goods orders increased by 1.9% last month. The data was better than expected; consensus expectations compiled by various news organizations called for durables to contract 0.5%.
Excluding the volatile transportation sector, new orders increase 0.3% the government said. Core durable goods orders were relatively in line with forecasts as economists were calling for an increase of 0.2%.
The gold market is not seeing much reaction to the latest economic data as it continues to trade on either side of unchanged. August gold futures last traded at $1,717.60 an ounce.
According to some economists, the latest positive economic data will further add to the debate as to whether or not the U.S. economy is in or headed to a recession.
“The jump in durable goods orders in June mainly reflected a surge in defence aircraft orders. Private equipment investment growth still looks to have slowed in the second quarter, although the latest trade and inventories data suggest overall GDP growth could come in stronger than we had expected,” said Andrew Hunter, senior U.S. economist at Capital Economics in an note to clients.