Gold price seeing modest rise off its lows after disappointing data from New York Fed
(Kitco News) - The gold market remains under pressure but is slowly creeping higher as disappointing economic news from the New York Federal Reserve works counters growing investor optimism regarding a potential vaccine for the COVID-19 virus.
Monday, the New York Federal Reserve said its Empire State manufacturing survey’s general business conditions index fell to a reading of 6.3 in November, down significantly from October’s reading of 10.5. The data was worse than expected as consensus forecasts were calling for a rise to 13.8. December gold futures last traded at $1,883 an ounce, down 0.17% on the day.
The latest economic data is helping gold prices recover from an early morning selloff after Moderna announced news of a potential vaccines for the COVID-19 virus is 94.5% effective.
Economists and market analysts have noted that although a vaccine is good news for the global economy, the global pandemic has inflected a lot of damage on the economy. Economists note that the latest data from the New York Federal Reserve shows that the economy still faces a long recovery.