Gold Slips on Durable Goods Data

Gold Slips on Durable Goods Data

Gold slips on December US Durable Goods data that missed expectations. The yellow metal also off a bit overnight as the dollar slightly strengthened. Now investors await this afternoon’s comments from Federal Reserve Chairman Jerome Powell at the end of the central bank’s first policy meeting of the year for insight about the state of the economy.

Orders for long-lasting products posted the eighth straight month of gains, though December’s 0.2% rise was the smallest since the summer and missed the expected 0.9% gain. The Comex April contract dropped 0.60% on the news.

Meanwhile, U.S. Senate Majority Leader Chuck Schumer indicated that the Democratic majority would move to pass President Joe Biden’s $1.9 trillion coronavirus stimulus package even without Republican support — if necessary. Further stimulus measures, by Congress or the Fed, are considered bullish for gold because it acts as a hedge against the inflation that can follow.

April gold futures fell 0.2% to $1,854.80 an ounce Tuesday on Comex. Front-month futures rose 1.4% in the first two days of this week after gaining 1.6% last week. The yellow metal is down 2.1% so far this month. Gold climbed $372 — or 24% — in 2020 because of uncertainty about the economy and the coronavirus pandemic. Currently the April contract is down $11 an ounce to $1,843.00 and the DG spot price is $1,844.10.

The global economy will likely grow at a faster pace than previously anticipated in 2021 as the start of vaccinations in some countries has raised hope of an end to the coronavirus pandemic, the International Monetary Fund indicated in its outlook issued Tuesday. But the world’s economy still faces “exceptional uncertainty.” The IMF raised its forecast for global growth for this year and said the 2020 contraction would be almost a full percentage point less severe than previously expected.

Meanwhile, Biden announced Tuesday that his administration intends to order another 200 million vaccine doses — half from Pfizer and half from Moderna — to speed up shipments to states and enable the vaccination of most of the country by summer.

The COVID-19 virus has killed more than 2.15 million people worldwide and sickened more than 100 million. About 25% of the cases — and 20% of the deaths — are in the U.S. The country has more than 25.4 million cases, more than any other nation.

In upcoming economic news, U.S. initial jobless claims are scheduled for release Thursday, along with fourth quarter GDP. World leaders, economists and central bankers from around the world are also speaking virtually this week at the World Economic Forum — the annual gathering typically held in Davos, Switzerland.

Front-month silver futures rose 0.2% Tuesday to $25.54 an ounce on Comex. The March contract gained 2.7% in the first two days of this week after rallying 2.8% last week. Silver is down 3.3% this month after surging 17% in December and 47% in 2020. The March contract is currently off $0.40 an ounce to $25.120 and the DG spot price is $25.17.

Spot palladium fell 0.2% Tuesday to $2,354.00 an ounce It lost 2.1% in the first two days of the week after declining 0.9% last week. It’s down 4% this month. Palladium rallied 2% in December and 26% in 2020. The DG spot price is currently down $9 an ounce to $2,332.50.

Spot platinum increased 0.2% Tuesday to $1,107.80 an ounce. It’s up 1.5% in the first two days of the week after gaining 1.4% last week. It’s up 3.2% this month. The metal added 11% in December and 11% in 2020. Currently, the DG spot price is down over $30 an ounce to $1,073.60.


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