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(Kitco News) Gold fell after newly released data showed that orders for durable factory goods from the US were up 0.2% in December from the expected 0.9% rise.
Meanwhile, the November data was revised upward to an increase of 1.2%.
After the release, gold prices fell slightly with April Comex’s last gold futures trade at $ 1,843.70, down 0.60% in a day.
The monthly increase in durable goods orders was $ 0.4 billion and was largely driven by machine-related items.
The core durable goods division, excluding the volatile transport sector, rose 0.7% in December, exceeding expectations. Excluding defense, new orders advanced 0.5%.
The government’s report on durable goods covers items with an expected life of at least three years, such as kitchen appliances, computers, furniture, automobiles and airplanes.
While spending on durable goods represents a small fraction of US economic output, economists are watching carefully for any changes as a sign of where the economy might be headed.
Looking at the December report, analysts said the details were more encouraging than the main figure.
“The weakness was concentrated in the volatile transportation component which showed orders declining 1.0%,” said senior economist Katherine Judge of CIBC Capital Markets. The more important core capital goods group (non-defense, ex-aircraft), an indicator of business investment in equipment, recorded a 17.5% growth in shipments year-over-year in the fourth quarter, suggesting that business investment will be a growth contributor in Q4 Tomorrow’s GDP report The increase in orders in that group, which rose 20% year-on-year in the fourth quarter, is a positive indicator of capital expenditure in early 2021 as the goods-producing sectors are expected to remain resilient during the second wave . “
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