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(Kitco News) -
The gold market saw a sharp decline after the newly released data showed that orders for long-lasting U.S. factory goods were up 4.7% in June versus the expected increase of 1.3%. This was the fourth month in a row of positive gains for durable goods.
The monthly increase in durable goods orders was $13.6 billion and was largely driven by a 12.1% increase in transportation equipment, which was also up for the fourth consecutive month, the U.S. Census Bureau said in the report.
The core durable goods section, which excludes the volatile transportation sector, was up 0.6% in June versus the expected nominal rise of 0.1%. Excluding defense, new orders rose 6.2%.
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 signs of where the economy might be heading.
Gold declined sharply following the release, with August Comex gold futures setting session lows at $1958.30 at the time of writing after trading above $1982 in the early morning.
