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Philadelphia Fed Manufacturing Index drops as expected, gold price remains under pressure

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(Kitco News) Gold is under pressure Thursday morning after the index for current general activity in the Philadelphia Federal Reserve’s manufacturing business outlook survey dropped to 15.0 in September. 

The consensus expectations compiled by news organizations were expecting this decline. 

“Manufacturing activity in the region continued to expand this month … The survey’s current indicators for general activity, new orders, and shipments remained positive for the fourth consecutive month. The employment index improved in September and remained in positive territory for the third consecutive month. Nearly all of the future indexes increased, suggesting more widespread optimism among firms about growth over the next six months,” the Philadelphia Fed report said.

The index for new orders increased to 25.5 from 19.0. The shipments index decreased by 27 points to 36.6. The current employment index was up by seven points at 15.7 and the index for the average work week fell by four points to 7.8. On the inflation front, the index for prices paid rose by ten points to 25.1.  

Gold prices were down more than 1% on the day when the data was released with December Comex gold futures last trading at $1,949.20, down 1.08% on the day.

Live 24 hours gold chart [Kitco Inc.]

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