Gold prices holding on to gains following surge higher in Empire State Survey
(Kitco News) - Gold prices are holding on to strong gains even after momentum in the New York region’s manufacturing sector picks up.
Tuesday, the New York Federal Reserve said its Empire State manufacturing survey’s general business conditions index rose to a reading of 17 in September, up significantly from August’s reading of 3.7. The data was much better than expected as consensus forecasts were calling for a rise to 6.2.
“Forty percent of respondents reported that conditions had improved over the month,” the report said.
The latest economic data is not having much impact on gold as prices are relatively unchanged in initial reaction. December gold futures last traded at $1,976 an ounce, up 0.63% on the day.
According to some economists, the data bodes well for those expecting to see strong economic recovery after the world was turned upside due to the COVID-19 pandemic.
Looking at some of the components of the report, the new orders index climbed 7.1, up from August’s reading of 1.7. Meanwhile the region’s labor market saw a modest improvement with the employee index rising to 2.6, up from the previous readinndex rose to its highest level since November 2018.g of 2.4.
Some good news for gold investors, the report showed a strong rise in inflation pressures with the price paid index rising to 25.2, up from August’s reading of 16.