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(Kitco News) Gold ticked after recently released data showed that orders for long-term US factory goods rose 0.2% in December from the expected 0.9% advance.
Meanwhile, the November data was revised upwards to a 1.2% increase.
After launch, gold prices fell with April Comex gold futures trading at $ 1,843.70, down 0.60% on that day.
The monthly increase in durable goods orders was $ 0.4 billion and was largely driven by machinery-related items.
The main section of durable goods, which excludes the volatile transport sector, grew by 0.7% in December, exceeding expectations. With the exception of defense, the new orders advanced by 0.5%.
The government’s sustainability report covers items with a life expectancy of at least three years, such as kitchen appliances, computers, furniture, cars and airplanes.
Even if spending on durable goods is a small part of US economic output, economists are watching for any change as a sign of where the economy might be heading.
Looking at the December report, analysts said the details are more encouraging than the stock number.
“The weak point was concentrated in the volatile transportation component, which showed that orders fell 1.0%,” said CIBC Markets chief economist Katherine Judge. “The largest group of capital goods (non-defense, ex-aircraft), an indicator of investment in equipment, recorded a 17.5% increase in deliveries in annualized terms in the fourth quarter, suggesting that investment in business will contribute to tomorrow’s GDP growth in the fourth quarter. The advance in orders in this group, which grew by 20% annually in the fourth quarter, is a positive indicator for capital spending in early 2021, as goods-producing sectors are expected to remain resilient in the middle of the second wave. ”
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