Gold prices holding on to $1,900 as US durable goods orders rise 0.8% in March

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(Kitco News)- The gold market is holding on to the $1,900-level but is finding no new bullish momentum following mixed manufacturing data for March.

On Tuesday, the Commerce Department said that US durable-goods orders increased by 0.8% last month. The data was weaker than expected; consensus expectations compiled by various news organizations called for durable to increase 1.0%.

The report noted that durable goods orders have increased five out of the last six months. In February, orders dropped 2.2%.

“Computers and electronic products, up two of the last three months, led the increase,” the report said.

Excluding transportation, new orders increased 1.1%, the government said. Core durable goods orders significantly beat consensus forecasts; economists were calling for an increase of 0.5%.

The gold market is not seeing much reaction to the latest economic data as it sees some modest technical buying following Monday’s sharp drop. June gold futures last traded at $1,901.80 an ounce, up 0.30% on the day.

Analysts note that the US dollar is trading at session highs following the report. The US dollar index last traded at 101.95 points. Some analysts have said that new momentum in the greenback could weigh on gold prices.

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