Gold price declined on a stronger U.S. dollar and as stock markets seem to stabilise. The U.S. dollar rose against other currencies as the U.S. durable goods orders were better than expected. The U.S. durable goods orders increased 2.0% in July, beating expectations for a 0.4% decrease, after a 4.1% gain in June. June's figure was revised up from a 3.4% rise.
The increase was partly driven by rises in new machinery, electronics and other goods.
The U.S. durable goods orders excluding transportation rose 0.6% in July, exceeding expectations for a 0.4% gain, after a 0.8% increase in June.
The U.S. durable goods orders excluding defence climbed 1.0 % in July, after a 4.2% gain in June. June's figure was revised up from a 3.8% increase.
Comments by Federal Reserve Bank of New York President William Dudley supported gold price. Dudley said on Wednesday that the interest rate hike in September seems less compelling.
September futures for gold on the COMEX today decreased to 1122.30 dollars per ounce.