(Kitco News) Gold was trading just above $1,800 an ounce after the newly released data showed that orders for long-lasting U.S. factory goods were down 2.1% in November versus the expected decline of 0.6%.
Meanwhile, October’s data was downwardly revised to an increase of 0.7%.
Following the release, gold prices was largely unchanged, with February Comex gold futures last at $1,805.60, up 0.57% on the day.
The monthly decrease in durable goods orders was $5.8 billion and was largely driven by transportation equipment. The November’s drop comes after three months of consecutive gains.
The core durable goods section, which excludes the volatile transportation sector, surprised by beating expectations, rising 0.2% versus the expected increase of 0.1%. Excluding defense, new orders dropped 2.6%.
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 any changes as a sign of where the economy might be heading.
Analysts noted a weakening in the underlying investment demand. “Business equipment investment was probably supported again this quarter from a further recovery in transport, as autos shortages eased, but we expect it to weaken more markedly next year as the full impact of the Fed’s aggressive tightening this year feeds through,” said Capital Economics senior U.S. economist Andrew Hunter.
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