Gold prices holding solid gains as New York Fed Empire State Survey rises to 4.5 in November
(Kitco News) - The U.S. manufacturing sector appears to be finding some new momentum as the Federal Reserve of New York reported modest growth for November.
Tuesday, the regional central bank said that its latest Empire State manufacturing survey's general business conditions index rose to 4.5, up from October's -9.5 reading. The data handily beat expectations as economists were looking for the index to remain in negative territory around 6.1.
The gold market is holding solid gains following the better-than-expected manufacturing data. Spot gold last traded at $1,784.10 an ounce, up 0.71% on the day.
The components of the report showed a mixed picture as the labor market improved and inflation remained persistently high.
The report said the New Orders Index dropped to -3.3, down from October's reading of 3.7. At the same time, the Shipments Index rose to 8.0, up from the previous reading of -0.3.
The labor market in the region's manufacturing sector saw healthy growth, with the Number of Employees Index rising to 12.2, up from October's reading of 7.7.
The report also notes that inflation remains a threat, with the Prices Paid Index rising to 50.5, up from October's reading of 48.6.