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New York Fed Empire State Survey sees strong recovery, rising to 34.3

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(Kitco News) - The gold market is holding on the line around $1,800 as the New York manufacturing sector sees a strong recovery, according to the latest data from the New York Federal Reserve.

Wednesday, the regional central bank said its Empire State manufacturing survey's general business conditions index surged higher to a reading of 34.3 in September, up significantly from August's reading of 18.3. The data was better than expected, as consensus forecasts were calling for a reading around 18.1.

"Manufacturing activity grew swiftly in New York State, according to the September survey," the report said. "Forty-six percent of respondents reported that conditions had improved over the month, while 12 percent reported that conditions had worsened."

The recovery in the region's manufacturing sector comes after it saw a sharp drop in August, falling from 43.

The gold market is not seeing much reaction to the latest economic data; the price is holding around $1,800 an ounce. December gold futures last traded at $1,803.50 an ounce, down 0.20% on the day.

The components of the report showed broad-based gains. The New Orders Index increased to 33.7, up from August's reading of 14.8. The Shipments Index rose to 26.9, up from the previous reading at 4.4.

The labor market also saw strong growth, with the Number of Employees Index rising to 20.5, up from August's level at 12.8.

Positive for gold, inflation pressures remain elevated. The Price Paid Index fell slightly to 75.7, down from the previous reading at 76.1.

However, the report noted that firms are able to pass on their costs to their consumers. The Prices Received index rose to a record high of 47.8, up from August's record high at 46. The report noted that this is the third record high for the index.

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