Gold prices hit a wall at $1,850 and can't find any traction following New York Fed manufacturing data
(Kitco News) - The gold market is holding on to gains but is back below its 200-day moving average after the New York Federal Reserve noting better-than-expected momentum in its regional manufacturing sector.
Monday, the regional central bank said its Empire State manufacturing survey’s general business conditions index rose to a reading of 24.3 in May, down slightly from April’s reading of 26.3. Despite the decline, the data beat expectations as consensus forecasts were calling for a decline to 23.9.
“As occurred last month, manufacturing activity grew at a sturdy pace in New York State in May,” the report said.
Although the gold market is seeing some selling pressure following the latest economic data. Some market analysts have said that the price action appears to be more related to strong resistance at $1,850 an ounce, which is represents the precious metals 200-day moving average.
June gold futures last traded at $1,847.8, up 0.53% on the day.
Although the New York Fed noted strong growth in the manufacturing sector across the board, it also continued to highlight that the increased economic activity is coming at a cost. Inflation pressures continue to rise at an unprecedented pace.
“Both input prices and selling prices rose at a record-setting pace,” the report said.