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Gold price holding overnight gains following 17.4 reading in New York Fed Empire State Survey

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(Kitco News) - The gold market is holding on to healthy overnight gains even as the New York Federal Reserve reported stronger than expected sentiment in its March regional manufacturing survey.

Monday, the regional central bank said its Empire State manufacturing survey’s general business conditions index rose to a reading of 17.4 in March, up from February’s reading of 12.1. The data were also much better than expected as consensus forecasts were calling for a rise to 14.6.

The survey shows that sentiment in the manufacturing sector is at its highest level since May 2019.

The latest manufacturing data is not having much impact on gold prices. April gold futures last traded at $1,727.30 an ounce, up 0.44% on the day.

While sentiment in the manufacturing sector is improving it is not without a cost. The report noted that price pressure are at their highest level in a decade. The Prices Paid Index increased to 64.4 up from January’s reading of 57.8.

Market analysts have said that gold should find new momentum as inflation pressures keep real interest rates in low to negative territory.

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