GoldPrice

New orders for capital and durable goods produced in the US dropped more than expected in April, supporting the view that the economy is slowing after an anomalous Q1 GDP boost.

The number of US citizens filing for unemployment benefits dropped to 211,000 vs. 215,000 expected for the week ended May 18, according to the Labor Department. While the economy may be losing some momentum, the labor market continues to show signs of strength.

Today’s Federal Reserve minutes were in line with expectations as the Fed continued its stance of patience signaling that they are happy with the current health of the economy. They indicated that the current Fed Funds rate is likely to remain steady for the foreseeable future. The Fed also addressed the trade war and the lackluster inflation data and they are not too worried about either issue.

The housing market continues to show signs of weakness with the latest report revealing a decrease in home sales for the month of April. Home sales have now declined for 14 months in a row.

Good morning gold traders, and welcome to another week in the metals markets. Following an energetic week of trading just behind us, gold price has had a mild beginning to the week ahead and at time of writing remains within easy touching distance of Sunday’s opening price.

Happy Friday, traders. Welcome to your weekly recap of the gold market. So, what kind of week has it been? The dictionary definition of “up-and-down” I’d say. As we covered on Monday, risk-off trading spiked hard on the back of heavy news-flow around sharpening US-China trade tensions and a serious round of new tariffs announced

US consumer sentiment is at the highest level in 15 years according to the results of the University of Michigan Consumer Sentiment Survey released on Friday. The index rose to 104.2 in May, outperforming all market expectations.

The number of Americans filing applications for unemployment benefits fell more than expected last week with 212,000 applications vs. 220,000 expected. The labor market continues to show signs of strength, buoying up other sections of the US economy amid an ongoing trade war and a global economic slowdown.

US homebuilding saw stronger than expected activity in April with a 5.7% rise in housing starts, with increases in both single-family and multi-family housing units. Data for the month before was also revised upward.

The Philadelphia Federal Reserve reports that its manufacturing index hit a four-month high of 16.6 in May, well above the reading of 8.5 seen in April as well as the expected figure of only 9. Based on the data, it’s possible that inventories are finally unwinding after being stockpiled throughout the ongoing trade war, a view also supported by the recent NY Fed manufacturing report.

Consumer spending fell 0.2% in April, a sign that the overall economy might be slowing. Retail Sales in March were revised up from a 1.6% increase to a 1.7% increase following the decline in February. Retailers could take further hits if President Trump imposes the additional tariffs, many of the new proposed tariffs are focused on consumer products.

Industrial production in the US declined by -0.5% in April, brought low by a major drop in factory output due to the ongoing reduced demand for autos and auto parts. The rate of growth was the slowest in two years, and the 2^nd worst since the last recession.