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Gold Prices Ignore Strong Rise In Philly Fed Survey Data

Kitco News

(Kitco News) - The gold market is holding on to modest gains, just down from session highs following data that shows strong momentum in the manufacturing sector within the Philadelphia region.

Thursday, the Philadelphia Federal Reserve reported that the  after news that the current general activity index in its manufacturing business outlook survey rose to 22.9 in September, up from 11.9 in August.

Consensus expectations compiled by various news organizations were for a reading of somewhere around 17.9.

"The survey’s broad indicators for general activity, new orders, shipments, and employment remained positive and increased from their readings in August. The survey’s respondents reported diminished price pressures this month," the report said.

Economic data is having little impact on gold prices as the market continues to be dominated by investments flows in the U.S. dollar. A weaker U.S. dollar is providing some support for the yellow metal, which saw little reaction to the Philly Fed data.

December gold futures last traded at $1,211.20 an ounce, up 0.24% on the day.

The components of the index showed broad-based strength within the manufacturing sector. The report said that new orders increased to a reading of 21.4, up from August’s reading of 9.9.

At the same time shipments increased in September to 19.6, up from the previous level of 16.6.

The labor market also saw strong growth with the number of employees index increasing to 32.1, up from August’s level of 14.3.

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