Gold breaks above $1,400 on weak U.S. durable goods data

Reuters (27/8)- NEW YORK/LONDON - Gold prices rose to an 11-week high on Monday after a surprisingly weak report on U.S. durable goods boosted hopes that the Federal Reserve will maintain its bond-buying to prolong economic stimulus. The metal breached $1,400 for the first time since June 7 after data showed orders for long-lasting U.S. manufactured goods recorded their biggest drop in nearly a year in July, while a gauge of planned business spending on capital goods also tumbled. Spot gold edged up 0.3 percent to stand at $1,400.61 an ounce at 3:38 PM EDT (1938 GMT), having earlier peaked at $1,406.10. U.S. COMEX gold futures for December delivery settled down $2.70 at $1,393.10 an ounce. http://www.reuters.com/article/2013/08/26/markets-precious-idUSL4N0GR1M020130826