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Gold prices holding overnight gains following strong rise in Philly Fed Survey

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(Kitco News) - The gold market continues to hold on to solid overnight gains as momentum in the Philadelphia region continues to build positive momentum, according to the latest data from the Philadelphia Federal Reserve.

Thursday, the regional central bank said its manufacturing business outlook rose to a reading of 27.4 in March, up from its February's reading of 16. The data significantly beat expectations as consensus forecasts were calling for a reading around 15.1.

The report said that the index is at its highest level since November 2021.

The better-than-expected data is not having much impact on gold prices as the market holds strong gains following a hawkish statement from the Federal Reserve Wednesday, following its monetary policy meeting. April gold futures last traded at $1,940.5 an ounce, up 1.65% on the day.

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The report noted broad-based gains in the region's manufacturing sector. The New Orders index rose to 25.8, up from February's readings of 14.2. At the same time the Shipments Index rose to 30.2, up compared to the previous reading at 13.2.

The report also noted strong gains in the labor market with the Number of Employees Index rising to a record high of 38.9, up from February's reading of 32.3.

Positive for gold, the report also noted a significant rise in inflation pressure. The Prices Paid Index rose to 81.0, up from the previous level at 69.3.

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