Gold Ignores Weaker-Than-Expected Philly Fed Survey
(Kitco News) - Gold prices remain unchcanged on the day and off its recent highs despite another miss in an important regional manufacturing survey.
Thursday the Philadelphia Federal Reserve said its manufacturing business outlook survey declined to 22 in April, below expectations and down from March’s reading of 32.8. The consensus expectations compiled by various news organizations were for a slight drop to a reading of 25.6.
“The survey’s future indicators continued to reflect general optimism but retreated from their high readings in the first three months of the year,” the report said.
In initial reaction, Comex April gold maintained its weakness seen overnight, last trading at $1,282.30 an ounce, relatively flat on the day, and well off the five-month highs see at the start of the week.
The components of the report showed broad-based weakness. The New Orders Index declined to 27.4 in April, compared to March’s reading of 38.6. at the same time shipments declined 29.5 down from 32.9 seen last month.
However, employment in the region’s manufacturing saw a strong increase with the Number of Employees Index rising to 45.9 up from March’s reading of 17.5.
The latest regional manufacturing report comes on the heels of the New York Federal Reserve’s Empire State manufacturing survey, which saw a sharp decline this month, dropping to 5.2 in April, following March’s reading of 16.4.