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Gold Prices Holding Steady Following Drop In New York Fed Empire State Manufacturing Survey

Kitco News

(Kitco News) - Gold prices are holding gains above $1,500 an ounce but seeing little reaction to weaker than expected manufacturing data within the New York state region.

Monday, the New York Federal Reserve said its Empire State manufacturing survey’s general business conditions index dropped to a reading of 2 in September, down from August’s reading of 4.8. Consensus forecasts were expecting a reading around 4.1.

“Manufacturing firms in New York State reported that business activity was little changed from last month,” the report said.

Gold prices are higher following a rise in global geopolitical stability and higher oil prices after oil fields in Saudi Arabia were attacked over the weekend. Monday’s economic data is having little impact on gold following the surprise drone attack. December gold futures last traded at $1,510.60 an ounce, up 0.74% on the day.

Although the headline data were weaker than expected, the components of the report were relatively mixed. The report said that its New Orders index dropped to a reading of 3.5, down from August reading of 6.7.

At the same time the Shipments Index dropped to a reading of 5.8, compared with the previous level of 9.3.
However, the regional manufacturing labor market remained healthy with the Number of Employees Index rising to 9.7, up from August’s negative reading of 1.6.

The report also noted rising inflation pressures with the Prices Paid Index rising to 29.4, up from August’s reading of 23.2

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