The gold price stopped just short of the psychologically important $1,200 level early on Wednesday afternoon after forecast-missing US durable goods orders extended the dollar’s retreat.
The spot gold price was last at $1,196.50/1,197.30, up $5.50 per ounce, having hit a high of $1,198.50.
US core durable goods orders at -0.4 percent missed the 0.3 percent forecast – the third such undershoot in four months – which the report attributed to lower demand for large commercial aircraft and autos. Durable goods orders at -1.4 percent also fell short of the expected 0.3 percent.
Having weakened throughout the morning, the dollar hit an intraday low of 1.1014 against the dollar, providing gold with the impetus to move towards $1,200.
Earlier, a positive German IFO business climate figure this morning spurred the euro higher – at 107.9, it beat the forecast 107.4 and was at its highest since July 2014.
Companies were said to be more satisfied with the current business situation in Germany, the linchpin of the European economy, while also expressing greater optimism about future business developments.
Other metals also moved higher – silver was last up 15 cents at $16.03/16.08 per ounce, having peaked at $17.08, while platinum was up $12 at $1,145/1,150 and palladium was $5.50 higher at $765/770.
(Editing by Mark Shaw)
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