Gold prices continue their decline after U.S. durable goods drop 5.2% in July
The gold market declined as US factory goods orders showed a larger decrease than expected, indicating possible economic weakness.
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Posted 8/24/2023, 12:43:00 PM
kitco.com
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The gold market is experiencing technical selling pressure and a decline in response to better-than-expected US labor market data.
The improving economic outlook for the US has made gold less appealing to investors, but weakness in US consumers could still lead to a recession and boost the precious metal, while Chinese stimulus may support silver demand, according to Heraeus' precious metals report.
Gold and silver prices are slightly lower in midday trading due to a correction after this week's gains and a strong rally in the US dollar index, while the busy US data week is highlighted by Friday's employment situation report for August from the Labor Department.
The U.S. dollar declined due to weaknesses in economic growth, leading to a boost in the performance of gold and U.S. equities, while other global assets experienced mixed price movements throughout the week.
Gold price remains below the resistance level of $1,950.00 as investors await the US Services PMI data, while cooling labor market conditions increase the likelihood of the Federal Reserve keeping interest rates unchanged for the rest of the year.
Silver and gold prices have slightly declined, with silver down 4% and gold down 0.5%, leading to speculation about the potential for traders to switch back to silver from gold.
Gold prices decline slightly as the dollar remains strong, with investors awaiting further signals on the U.S. Federal Reserve's monetary policy after an expected interest rate pause this month.
Gold and silver prices are lower due to a strong U.S. dollar and rising U.S. Treasury yields, while trader and investor risk appetite is downbeat with downbeat economic data from China and Asian stock markets mostly lower.
Gold prices fell around 1% after Labor Day, with retail investors expecting further declines next week, while market analysts remain bearish, citing the strength of the U.S. dollar as a key factor influencing gold's performance.
Stocks declined amid speculation that US inflation data will show persistent price pressures, increasing the likelihood that interest rates will remain elevated; market focus is on the US consumer price report.
Gold prices are trading at session lows due to tighter labor market conditions and significant selling pressure, as weekly jobless claims fell by 20,000 to 201,000, surprising economists who were expecting an increase.