Gold Prices See Small Drop After Philly Fed Reports Strong Momentum In Manufacturing Sector
(Kitco News) - Gold prices are seeing modest selling pressure following data that points to strong momentum in the manufacturing sector.
Thursday, the Philadelphia Federal Reserve said its manufacturing business outlook survey rose to 21.8 in June. The data significantly beat expectations as consensus forecast expected a reading around 5.
"Responses to the July Manufacturing Business Outlook Survey suggest an improvement in regional manufacturing conditions compared with last month," he said.
Gold prices were relatively unchanged on the day ahead of the report and has lost some ground in initial reaction. August gold futures last traded at $1,420.90 an ounce, down 0.19% on the day.
There appears to be growing momentum within the manufacturing sector this week. Monday, the New York Fed said its manufacturing index rose back into positive territory, to 4.6, up from June’s reading of -8.3.
The report highlighted broad-based strength throughout the region’s manufacturing sector. The New Orders Index increased to 18.9, up from June’s reading of 8.3; at the same time, the Shipments Index rose to 24.9, up from the previous level of 16.6.
The sector’s labor market is also seeing strong growth; the Number of Employees Index rose to 30.0, up from June’s reading of 15.4.
Positive for the gold market, inflation pressures appear to be on the rise with the Price Paid Index rising to 16.1, up from June’s reading of 12.9.