Gold prices continue to fall as US economy shows positive signs
Gold prices continued to fall below the threshold of 3,300 USD/ounce, although the US manufacturing industry is still in decline but there are more positive signs than expected.
Orders for durable goods fell 6.3% last month, after rising 7.5% in March, according to the Commerce Department. Still, the figure was better than economists’ forecasts, which had expected a 7.6% decline.
The core durable goods sector, which excludes the volatile transportation sector, rose slightly by 0.2% in April, beating expectations for a 0.1% decline.
However, orders for non-defense capital goods (excluding aircraft) fell 1.3%, compared with a 0.3% increase in March, while analysts expected only a 0.1% decline.
Experts say any report that the economy is not in a recession as severe as initially feared could reduce safe-haven demand for gold.
Currently, spot gold price is at 3,292.40 USD/ounce, down 1.46% on the day.
Overall, although some better-than-expected US economic indicators have put pressure on gold prices, the market remains cautious due to potential uncertainties. If the economy continues to show signs of recovery, gold may find it difficult to increase sharply in the near future.
Technically, June gold futures remain in a short-term uptrend. The next target for bulls is to push the closing price above the strong resistance level at $3,400/ounce.
Meanwhile, sellers are aiming to push prices below the key support at the May low of $3,123.30 per ounce. The nearest resistance levels are $3,300 and $3,366.50, while the nearest support lies at $3,250 and $3,225.