Weak Philly Fed manufacturing data providing little support for gold price
(Kitco News) - Weaker-than-expected manufacturing data is having little impact on gold prices as markets focus on growing momentum in the U.S. labor market.
Thursday, Philadelphia Federal Reserve said its manufacturing business outlook fell a reading of 23.8 in October, down from its September reading of 30.7. The data missed expectations as consensus forecasts were calling for a reading around 25.1.
The latest economic data has been unable to provide any bullish momentum to the gold market. Spot gold prices last traded at $1,784.60 an ounce, up 0.13% on the day. While the Philly Fed Survey supported the gold market, a lot of attention is focused on weekly jobless claims, which fell to a new pandemic low Thursday.
Although the headline number was disappointing, the components of the report showed some positive trends in the region’ manufacturing sector. The report said that the New Orders Index increased to 30.8, up from 15.9 in September. Meanwhile, The Shipments Index increased to 30.0, up a tick from September’s level of 29.9.
The labor market also showed positive growth. The Number of Employees Index increased to 30.7, up from 26.3 in September.
Positive for the gold market, inflation pressures continue to build. The report said that the Prices Paid Index increased to 70.3, up from 67.3 in September.