The most recent data on durable goods orders in the United States indicates a decline of 2.2%, which falls short of market expectations set at 0.5% and is also lower than the revised figure from the previous month of -2%. This report highlights emerging weaknesses in the manufacturing and investment sectors, signaling potential economic slowdowns.
This drop in data significantly influences market expectations regarding the monetary policy of The Federal Reserve, as these figures could decrease the probability of further interest rate hikes. Such conditions exert pressure on the US dollar, ultimately serving as a favorable catalyst for gold prices.
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Gold, recognized as a safe haven asset, experienced a boost due to the weakening dollar following the data release. The precious metal rose to $2,749 as investors sought refuge amidst concerns about an economic slowdown.
Additionally, the currency pairs EURUSD and GBPUSD also received upward momentum after the data was released; however, their gains appeared limited due to substantial selling pressure.
