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Gold Prices Holding Steady Following Biggest Drop In Empire State Survey Ever

Kitco News

(Kitco News) -Gold prices are pushing into unchanged territory, seeing some modest buying pressure after manufacturing sentiment in the New York region fell into negative territory.

Monday, the New York Federal Reserve said its Empire State manufacturing survey’s general business conditions index dropped to a reading of negative 8.6 in June, down from May’s reading of 17.8. Consensus forecasts were calling for a decline to 12.1.

According to reports this is the largest-ever drop in the survey. This is the first negative reading in more than two years.

"Business activity took a sharp turn downward in New York State, according to firms responding to the June 2019 Empire State Manufacturing Survey," the report siad.

Gold prices were trading in negative territory ahead of the report and saw a modest jump higher to trade nearly unchanged on the day. August gold futures last traded at $1,343.30 an ounce, down 0.10% on the day.

The components of the report showed broad-based weakness across the board. The report said that the New Orders Index dropped to a reading of -12.0, down from May’s reading of 9.7. The Shipments Index dropped to 9.7, down from the previous level of 16.3.

The region’s labor market is also shrinking with the Number of Employees Index dropping to -3.5, down from May’s reading of 4.7.

Positive for gold, inflation pressures are on the rise. The report said that the Prices Paid Index increased to 27.8, up from May’s reading of 26.2.

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