Gold prices continue their decline after U.S. durable goods drop 5.2% in July

NEW YORK (August 24) The gold market continued its downward trajectory on Thursday morning after newly released data showed that orders for long-lasting U.S. factory goods were down 5.2% in July versus the expected decrease of 4%, and following a downwardly revised 4.4% increase in June. This was the first month of decline for durable goods after four months in a row of positive gains.

The monthly decrease in durable goods orders was $15.5 billion and was driven by a 14.3% decrease in transportation equipment, which was also down after four months of positive prints, the U.S. Census Bureau said in the report.

Core durable goods, which excludes the volatile transportation sector, were up 0.5% in July versus the expected 0.2% increase. Excluding defense, new orders declined by 5.4%.

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 durable goods data for signs of where the economy might be heading.

Gold continued its steady morning decline following the release, with spot gold at $1912.35 at the time of writing after trading above $1922 in the early morning.

KitcoNews