Gold remains under pressure as Philadelphia Fed Manufacturing Index rises
(Kitco News) Gold prices continued to trade under slight pressure after the index for current general activity in the Philadelphia Federal Reserve’s manufacturing business outlook survey rose to 10.4 in November.
Any reading above zero points to improving conditions. The consensus expectations compiled by news organizations were expecting a reading of somewhere around 7.0.
The Philadelphia Fed said that general activity indicators remained positive but their movements were mixed in November.
“The indicator for general activity increased, but the new orders, shipments, and employment indicators decreased from their readings last month. The survey’s future activity indexes remained positive, suggesting continued optimism about growth for the next six months,” the Philadelphia Fed report said.
The index for new orders dropped by 18 points to 8.4. The shipments index decreased by nine points to 9.8. The current employment index decreased by 11 points to 21.5 and the index for the average work week fell to 5.2. On the inflation front, the index for prices paid fell by nine points to 7.8 – the lowest level since March 2016.
Gold has zeroed in on the U.S.-China trade headlines this week and has largely ignored the latest Philly Fed manufacturing data. Prices continued to trade under slight pressure following the data release with December Comex gold last at $1,469.10, down 0.35% on the day.
“Buyers of the safe-haven metals remain very timid as there have been no major new developments on the geopolitical or macroeconomic fronts to propel the bulls,” said Kitco’s senior technical analyst Jim Wyckoff. “Once again, the marketplace is focusing on the up-and-down U.S.-China trade talks, and now with a downbeat bias.”