U.S. DURABLE GOOD ORDERS, GOLD FALL
Orders for durable goods fell 5.2 percent in January, mostly due to declines in defense and commercial aircraft orders. When those specific items are removed, there was actually a rise in orders for the fifth straight month. Ahead of the durable goods release, the stock market was up in anticipation of Federal Reserve Chairman Ben Bernanke’s second day of testimony. On Tuesday, Bernanke said, “In the current economic environment, the benefits of asset purchases…are clear.” Statements like this sent a clear signal to investors that the Fed backs a continuation of the central banks bond buying program.
The Gold price fell again in overnight trading after posting its best day in three months. Bernanke’s talk on the Fed’s commitment to loose monetary policy is credited with reaffirming Gold’s safe haven appeal yesterday and likewise with the overnight sell off as investors cashed in some of those gains. Natixis analyst Bernard Dahdah said, “Today prices are slightly lower ... we see Gold supported around these levels as the Fed's second day of testimony should reiterate a [Quantitative Easing]-supportive stance.”
At 9:15 a.m. (EST), the APMEX Precious Metals spot prices were:
- Gold, $1,609.30, Down $7.70.
- Silver, $29.26, Down $0.09.
- Platinum, $1,611.30, Down $6.20.
- Palladium, $740.50, Down $0.50.
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