Gold prices remain under pressure as Philly Fed Survey falls to -19.4 in November
(Kitco News) - The gold market continues to see solid technical selling pressure even as the Philadelphia Federal Reserve reported weaker-than-expected activity within the manufacturing sector.
Thursday, the regional central bank said its manufacturing business outlook fell to -19.4 in November, down from October's -8.7 reading. The data missing expectations as consensus forecasts called for a negative reading around 6.
The latest economic report is not having much impact on gold as it is weighed down by renewed momentum in the U.S. dollar. December gold futures last traded at $1,764 an ounce, down 0.66% on the day.
The components of the report showed broad-based weakness with persistently high price pressures. The report said the New Orders Index dropped to -16.2, down from the previous reading of -15.9. At the same time, the Shipments Index fell to 7.0, down from October's level of 8.6.
The labor market also lost momentum, with the Number of Employees Index falling to 7.1, down from October's 28.5.
Looking at inflation pressures, the report said that the Price Paid Index fell slightly to 35.3, down from October's reading of 36.3. Analysts note that inflation remains sticky and could force the Federal Reserve to maintain its aggressive monetary policy stance for longer than expected.