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(Kitco News) –
The gold market continues to trade near session lows, briefly dipping below $1975 this morning after the U.S. manufacturing sector saw much stronger than expected activity last month.
On Thursday, the Commerce Department said that U.S. durable goods orders rose by 4.7% or $13.2 billion in September, following August’s revised 0.1% decrease. The data was far stronger than expected as economists were looking for an increase of 1.7%.
This marks the most substantial monthly increase in durable goods orders since July 2020, and the overwhelming majority of the strength was concentrated in the transportation sector, they said.
Core durable goods, which exclude the volatile transportation sector, increased only 0.5%, the same as August’s revised increase of 0.5%. The core numbers were also stronger than expected, however, as economists were looking to see a 0.2% increase.
The gold market sold off following the data, which was released at the same time as advance Q3 GDP, which also surprised to the upside, and the precious metal is still trading near session lows. Spot gold last traded at $1,975.83 an ounce, down 0.21% on the session after hitting a low of $1,974.73 in the minutes following the release.
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