Gold prices ignore strong rise in Philly Fed survey, prices holding well above $1,600
(Kitco News) - The gold market remains unfazed holding well above $1,600 an ounce despite a strong jump in sentiment in the manufacturing sector, according to the Philadelphia Federal Reserve.
The Philly Fed said that its manufacturing business outlook increased to a reading of 36.7 in February up from January’s reading of 17.4. The data significantly beat expectations as consensus forecasts were calling for a reading 10.1.
"Responses to the February Manufacturing Business Outlook Survey suggest a pickup in growth in manufacturing activity this month," the report said.
It has been a very strong week for gold, despite stronger than expected U.S. economic data. Gold continues to push higher despite the latest data. April gold futures last traded at $1,618.60 an ounce, up 0.42% on the day. Investors appear to be focused more on potential global economic weakness due to the spreading coronoavirus.
Looking at the components of the report, the new orders index increased to 33.6, up from 18.2 reported in January. Meanwhile the shipments index increased to 25.2, up from the previous reading of 23.4.
However, it wasn’t all good news in the report, the regional’s labor market is losing momentum. The report said that the number of employees index dropped to a reading of 9.8, down from January’s reading of 19.3.
Inflation pressure also appear to be dropping. The report said that its prices paid index dropped to 16.4, down from January’s reading of 22.1.