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Gold price finds little direction from mixed Philly Fed, Empire State manufacturing surveys

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(Kitco News) - The gold market is struggling to hold in positive territory as it finds little direction from mixed regional manufacturing data from the Philadelphia and New York Federal Reserves.

Thursday, the Philly Fed said its manufacturing business outlook fell to a reading of 21.9 in July, down from June’s reading of 30.70. The data significantly missed expectations as consensus forecasts were calling for a reading around 28.1.

Meanwhile, the New York regional central bank said that its Empire State manufacturing survey’s general business conditions index rose to a reading of 43 in July, up significantly from June’s reading of 17.4. The data were much better than expected as consensus forecasts were calling for a rise to 17.9.

“Business activity grew at a record-setting pace in New York State, according to firms responding to the July 2021 Empire State Manufacturing Survey,” the report said.

The gold market is not seeing much price action from the latest economic data; however, the market is struggling to hold in positive territory. August gold futures last traded at $1,824.20 an ounce, nearly unchanged on the day.

Looking at some of the components of the Philly Fed survey, the report said that its new orders index dropped to a reading of 17, down from June’s reading of 22.2

While still relatively strong, the regional labor market lost some momentum with the number of employees index falling to 29.2, down from May’s reading of 30.7.

Manufacturing businesses also saw a sharp drop in price pressures. The prices paid index dropped to 69.7, down from June’s reading of 80.7.

Turning to the New York Fed survey, the report said that the new orders index rose to a reading of 33.2, up from June’s level of 16.3.

The regional labor market also saw strong growth with the number of employees index rising to 20.60, up from the previous reading at 12.3.

Inflation pressures were slight weaker with the price paid index dropping to a reading of 76.8, down from June’s reading of 79.8.

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