By Joe Deaux
Gold gained for a second straight day after U.S. durable-goods orders dropped, adding to speculation that Federal Reserve policy makers will be slow to raise interest rates. Copper futures posted the biggest loss in a month.
Bookings for goods meant to last at least three years slid 4 percent in June, a bigger fall than forecast and the most since August 2014. Gold settled just as the Fed concluded a two-day meeting, where policy makers left interest rates unchanged while saying risks to the U.S. economy have subsided.
Gold has climbed 26 percent this year, partly as the Fed indicated it would hold rates lower for longer. Central banks have pledged more monetary easing amid concerns over fallout from the U.K.’s vote to leave the European Union. Japan Prime Minister Shinzo Abe announced plans for more than 28 trillion yen ($265 billion) to help prop up the economy.
“With everything that’s been happening around the globe, you’ve got stimulus, negative interest rates and Brexit, and so you have enough of a reason for the Fed to postpone moving the needle,” George Gero, a managing director for RBC Wealth Management in New York, said in a telephone interview. “The betting is that the Fed may have a hawkish tone, but they’re not going to raise rates, and that’s good for gold.”
Gold futures for December delivery advanced 0.5 percent to settle at $1,334.50 an ounce at 2:00 p.m. on the Comex in New York, the first consecutive gain in a week.