Dollar's Decline Boosts Gold Amid Weak Durable Goods Data
The gold market showed resilience in the face of weak US durable goods data and uneven safe-haven demand. Despite this, spot gold prices rose 0.80% to $4,087.17 as the dollar fell and oil retreated.
An increase in the US durable goods orders was expected but came in below economists' consensus estimates at 0.3%. However, analysts noted that weaker manufacturing activity could potentially support the precious metal by making the Federal Reserve more reluctant to raise interest rates despite elevated inflation pressures.
The dollar's decline provided another source of support for gold, as its index slipped 0.3%, making bullion cheaper for buyers using other currencies. The price action also gave bullion an unusual lift from easing geopolitical tension rather than a fresh rush into traditional safe-haven assets.