Gold price unable to hold support at $3,300 an ounce as U.S. durable goods beat expectations

NEW YORK (May 27) Gold prices continue to struggle and have been unable to hold initial support at $3,300 an ounce, as the U.S. manufacturing sector shows better-than-expected activity—even as it continues to contract.

The Commerce Department announced Tuesday that U.S. durable goods orders fell 6.3% last month, following March’s revised increase of 7.5%. The data was better than expected, as economists had forecast a 7.6% drop.

Core durable goods, which exclude the volatile transportation sector, increased 0.2% in April, also beating the consensus forecast of a 0.1% decrease.

Finally, Non-defense capital goods excluding airplane manufacturing dropped -1.3%, compared to March’s 0.3% increase; economists were looking for a 0.1% decline.

The gold market is not seeing much reaction to the mixed manufacturing data; however, analysts note that any report easing initial fears of a harsh economic slowdown will weigh on gold’s safe-haven demand. Spot gold last traded at $3,292.40 an ounce, down 1.46% on the day.

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