Thursday, May 19, 2011

Leading Economic Indicators Fall For First Time Since June Of Last Year

The Conference Board's Index of Leading Economic Indicators (LEI) has shown good numbers for the last several months, rising in every month since July of last year. That changed when last April's number was released at 10 AM ET. The LEI fell 0.3% for that month, with six of the ten components negative. The worst component was average weekly initial claims for unemployment insurance. The LEI disappointed, as expectations were for it to stay flat.

The gold market didn't react all that much to the LEI announcement. After falling and troughing at $1,488 a little after 9 AM ET, the metal reversed course as the U.S. Dollar Index fell back. Peaking at $1,494 shortly after the report was released, the metal fell to a lower low of $1,487 before bouncing a little. The greenback slumped on the news, but later turned around and rose.

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