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U.S. durable goods beat expectations in April, gold price falls

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(Kitco News) Gold dropped after the newly released data showed that orders for long-lasting U.S. factory goods were up 1.1% in April versus the expected decrease of 1%.

Meanwhile, March’s number was revised up to an increase of 3.3%.

The monthly increase in durable goods orders was $3.1 billion, led by the transportation equipment sector - up for the second consecutive month, the U.S. Census Bureau said in the report.

The core durable goods section, which excludes the volatile transportation sector, was down 0.2% in April versus the expected unchanged territory. Excluding defense, new orders fell 0.6%.

The government’s durables report covers items with an expected life of at least three years, such as kitchen appliances, computers, furniture, autos and airplanes. Economists carefully watch the data for changes to show where the economy might be heading.

Following the release, gold fell below $1,950 an ounce, with upbeat economic data encouraging more Federal Reserve rate hike bets, which weighed on gold. June Comex gold futures last traded at $1,946.90, up 0.16% on the day.

Live 24 hours gold chart [Kitco Inc.]

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