Gold prices are steady in Friday trade, with a spot price of $1293.58 in the European session. The metal dropped below $1270 on Thursday but bounced higher after deadly clashes in Ukraine. In economic news, today's highlight is UoM Consumer Sentiment. The markets are anticipating an improvement in the March release.
Gold has been under pressure throughout the week, thanks to strong confidence in the US economy. However, the metal posted gains on Thursday following reports of casualties in fighting in the Ukraine between government forces and pro-Russian militias resulted in casualties. The situation is very tense, and there are concerns that the US could be drawn into the conflict if Russia attacks Ukraine. In the meantime, the US and Europe continue to threaten Russia with further sanctions if the crisis escalates.
On Thursday, key US releases pointed in both directions. Unemployment Claims jumped to 329 thousand, its highest level since mid-February. This was much higher than the estimate of 309 thousand. There was much better news from the manufacturing front, as Core Durable Goods Orders jumped 2.0% in March, crushing the estimate of 0.6%. This was the key indicator's best showing since September 2o12. Durable Goods Orders kept up the fast pace with a sharp gain of 2.6%, beating the estimate of 2.1%.
The US housing sector continues to sputter. New Home Sales was a disaster, as the key indicator plunged to 384 thousand in March, down from 440 thousand in the previous release. The weak reading was nowhere near the estimate of 455 thousand, and marked an eight-month low for the key housing indicator. Existing Home Sales has also been on a sustained downward trend. The indicator edged lower in March to 4.59 million, although this did beat the estimate of 4.57 million.
