26 May 2015
Gold drops to two-week lows after the US durable goods report
FXStreet (Mumbai) - Gold prices hit a two-week low of USD 1188.9/Oz levels after the US April durable goods report carried strong core figures and solid upward revisions in the previous month’s figures.
Gold down 1.3%
The metal now trades 1.3% lower on the day. The drop from USD 1194 to USD 1188.9 was triggered by the Commerce Department data released in the US, which showed the orders for capital equipment rose in April for a second straight month. Orders for non-military capital goods excluding aircraft, a proxy for future corporate spending on new equipment, advanced 1% after a 1.5% gain in March.
Though the headline figure dropped 0.5% in April, the markets chose to ignore the same on account of an upward revision of the previous month’s figure to 5.1%. However, the upbeat report did not result into significant appreciation in the USD index, which trades at 97.20. Thus, it remains to be seen if the yellow metal stays weak or recover losses in the day ahead.
Gold Technical Levels
The immediate support is seen at 1184.6, under which the metal could extend the drop to 1178.00 levels. On the other hand, a break above 1192.00 could open doors for a re-test of 1195-1196 levels.
Gold down 1.3%
The metal now trades 1.3% lower on the day. The drop from USD 1194 to USD 1188.9 was triggered by the Commerce Department data released in the US, which showed the orders for capital equipment rose in April for a second straight month. Orders for non-military capital goods excluding aircraft, a proxy for future corporate spending on new equipment, advanced 1% after a 1.5% gain in March.
Though the headline figure dropped 0.5% in April, the markets chose to ignore the same on account of an upward revision of the previous month’s figure to 5.1%. However, the upbeat report did not result into significant appreciation in the USD index, which trades at 97.20. Thus, it remains to be seen if the yellow metal stays weak or recover losses in the day ahead.
Gold Technical Levels
The immediate support is seen at 1184.6, under which the metal could extend the drop to 1178.00 levels. On the other hand, a break above 1192.00 could open doors for a re-test of 1195-1196 levels.