FX Traders jumping as Gold trades over USD1,250 after durable goods data
November 27, 2013 – Gold prices rose higher on Wednesday, after the data showed U.S. core durable goods declined unexpectedly last month respectively.
FX players have closely been anticipating U.S. data reports recently to gauge if they will strengthen or weaken the case for the Fed to scale back the stimulus next quarter. On the Comex division on the New York Mercantile Exchange, the gold futures for February delivery was trading at USD 1,251.11 an ounce during the U.S. morning trade was up 0.8%.
However, the February contract ended and little changed on Tuesday to settle the contracts at USD 1,241.55 an ounce. Gold futures found support at USD 1,226.40 an ounce, a low from November 25 and resistance at USD 1,254.40, the high from November 25.
Frankly the U.S. Commerce Department stated that the core durable goods orders inched down by a season adjustment of 0.1% in October, albeit, a disappointing expectation for a 0.5% increase.
Total durable goods orders dropped by a seasonally adjusted 2% last month, worse than expectations for a 1.9% decline.
However, the shipments of the core capital goods, a category used to calculate quarterly economic growth and a decline of 0.2% last month, in line with expectations.
The Department of Labor stated that the number of individuals filing for initial jobless benefits in the week ending November 22 plummeted by 10,000 to a adjustment of 316,000.
The Dollar weakens usually benefits gold, as it boosts the mental of the asset and makes the dollar-priced commodities cheaper for holders of other currencies.