Some downbeat quarterly earnings reports boost prices
Bullion prices ended higher at Comex on Tuesday, 27 January 2015 at Comex. Gold prices ended the U.S. day session solidly higher on Tuesday, on more safe-haven demand as the U.S. stock market sold off following some downbeat quarterly earnings reports. A sharply lower U.S. dollar index on this day was also positive for the precious metals markets. Gold futures also added to modest gains Tuesday, after a sharp, unexpected fall in U.S. durable-goods orders hit stocks and triggered demand for havens.
Gold for February delivery rose $12.30, or 1%, to $1,291.70 an ounce.
March silver futures gained 10 cents to $18.08 an ounce.
Gold found support after the Commerce Department said orders for durable U.S. goods dropped 3.4% in December. Market had forecast a rise of 0.1%. In addition, November durable orders were revised to show a 2.1% drop, versus an initial estimate of a 0.9% fall.
Just before the opening on Tuesday companies like Caterpillar, Procter & Gamble, and Microsoft issued weaker-than-expected earnings reports. There was a heavy slate of U.S. economic data out Tuesday that included durable goods orders, the S&P/Case-Shiller home price index, the U.S. flash services PMI, the consumer confidence index, and new residential sales. The data was a mixed bag and had little collective impact on the markets.
New York City missed the major impact of a massive winter storm that is pummeling the northeastern U.S. Tuesday. However, some New York-based markets' trading volumes were a bit thinner due to the storm.
The regular meeting of the U.S. Federal Reserve's Open Market Committee (FOMC) began on Tuesday and ends Wednesday afternoon. Traders will look for clues coming from that meeting, regarding when the U.S. central bank will begin to raise interest rates. Recent developments, including plunging crude oil prices, have led many to believe the Fed might not raise interest rates until late this year, or may have to wait until 2016.
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