Gold Remains Higher After US Posts Disappointing Data

The gold market remain in positive territory and is seeing modest gains, following a weaker than expected reading in U.S. durable goods numbers for September.

Thursday, The Department of Commerce said new order of durable goods dropped by $0.3 billion or 0.1% to $227.3 billion last month, following August’s revised 0.3% increase. According to consensus forecasts, economists were expecting to see no change in the orders last month.

The report noted that this is the first decline after two consecutive positive months

Stripping out the volatile transportation sector, new orders of core durable goods rose 0.2%, in September, following August’s 0.4% decline. Economists were expecting to see an increase of 0.2%

Gold prices are trading near the top of the session’s range, and slightly higher from where they were ahead of the report; December Comex gold futures last traded at $1272 an ounce, up 0.42% on the day. Analysts continue to watch the 200-day moving average, which for the December contract now comes in at $1,273.30 an ounce.

Although the report showed broad-based weakness in the manufacturing sector, Avery Shenfeld, senior economist at CIBC World Markets, said the biggest disappointment was the 1.2% drop in business capital spending, non-defense capital goods orders ex-aircraft.

via Kitco

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza