FX & CFD trading involves significant risk
Gold prices show a decrease, despite the publication of weak US economic data on unemployment and orders for durable goods.
US Labor Department reported that the number of individuals filing for initial applications for unemployment benefits last week rose by 21,000, reaching a 11-week high 313000. Analysts had expected last week, the number of applications decrease by 5,000 to 287,000.
The number of Americans who applied for the first time for unemployment benefits rose above 300,000 for the first time in 11 weeks, indicating that the labor market recovery is losing momentum.
A separate report showed that orders for durable goods rose by a seasonally adjusted 0.4% last month compared to expectations for a decline of 0.4%. The volume of orders for durable goods excluding transportation fell by a seasonally adjusted 0.9% in October, confounding the forecast growth of 0.5%.
Also, the Commerce Department reported that personal spending rose last month by 0.2%, which was below the expected increase of 0.4%, while in October, personal income rose 0.2%, confounding projected growth of 0 4%.
The main index for personal consumption expenditures rose in October to an annual rate of 1.6%, higher than expected growth of 1.5%, after rising 1.5% in the previous month.
The Federal Reserve uses the index for personal consumption expenditures as a tool to determine whether to raise or lower interest rates to keep inflation at just below 2%.
Gold prices are likely to remain vulnerable in the short term amid signs that the strengthening of the US economic recovery will push the Fed to more rapid and sharp increase in interest rates than expected.
Expectations of growth rates on loans put pressure on gold as a precious metal with difficulty competing with the yield of interest-earning assets at higher rates.
The cost of the December gold futures on the COMEX today fell to 1193.70 dollars per ounce.
|remaining time till the new event being published|