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(Wallace Refiners) – The gold market is holding support above $1,850 an ounce; however, disappointing manufacturing data is not providing any new bullish momentum for the precious metal as prices remain in negative territory early in the session.
Wednesday, the Commerce Department said that U.S. durable-goods orders increased increase by 0.4% last month, following March’s downwardly revised 0.6% increase. The data was weaker expected; consensus expectations compiled by various news organizations called for durables to increase 0.6%.
Excluding transportation, new orders increase 0.3% the government said. Core durable goods orders also missed expectations; economists were calling for a increase of 0.5%.
The gold market has seen little reaction to the weak data as it trades in negative territory. June gold futures last traded at $1,855. an ounce, down 0.56% on the day.
According to some economists the weaker-than-expected manufacturing data could add to growing fears that the U.S. economy could slow more than expected.
Katherine Judge, senior economist at CIBC warned that the manufacturing sector could see further weakness this year.
“The downside miss was compounded by downward revisions to the prior month, but in year-over-year terms, orders are still up by 10% in the core capital goods group. Still, the delivery of durable goods ahead is threatened by supply chain issues resulting from lockdowns in China,” she said.
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