Gold prices struggling near $1,900 but sees no new selling pressure as U.S. durable goods rise 0.2% in August
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(Kitco News) - The gold market continues to trade near a six-month low, testing support just above $1,900 an ounce but is not seeing any new major selling pressure after the U.S. manufacturing sector saw stronger than expected activity last month.
Wednesday, the Commerce Department said that U.S. durable goods orders rose by $0.5 billion or 0.2% last month, following July’s drop of 5.6%. However, the data was stronger than expected as economists were looking for a decline of 0.5%.
Core durable goods, core durable goods, which excludes the volatile transportation sector, increased 0.4%, following July’s increase of 0.4%. The core numbers were also stronger than expected. Economists were expecting to see a 0.2% increase.
The gold market is not seeing much reaction to the latest economic data as the precious metal sees a solid wave of technical selling pressure after fall below the August lows. December gold futures are currently trading at $1,909.60 an ounce, down 0.53% on the day.
The gold market is currently trading at its lowest level since March and some analysts have said that with the current downtrend, prices have enough momentum to break through $1,900 an ounce.
The precious metal continues to be weighed down surging bullish momentum in the U.S. dollar index, which has pushed above 106. At the same time 10-year bond yields continue to hold above 4.5%.