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(Kitco News) - The gold market remains under significant pressure as mixed manufacturing data from two regional central banks is providing little direction for the precious metal as traders continue to digest the Federal Reserve's latest monetary policy decision.
Thursday, the New York Federal Reserve and the Philadelphia Federal Reserve showed contrasting health in their respective manufacturing surveys.
The New York Fed's Empire State manufacturing survey's general business conditions index rose sharply to 6.6 points in June, up from May's reading of -13.8. The data significantly beat expectations as economists were looking for the index to remain in deep negative territory at -15.0.
Meanwhile, the Philly Fed Survey fell to -13.8, down from last month's reading of -10.4. However, the data was relatively in line with the consensus forecast.
The gold market is not seeing much reaction to the last economic data. August gold futures are currently trading at their lowest level since mid-March, at $1,943.20 an ounce, down 1.32% on the day.
The gold market is largely ignoring economic data as markets continue to digest the Federal Reserve's latest monetary policy decision that was announced Wednesday. Although the central bank left interest rates unchanged, the committee maintained its hawkish bias. It signaled that it could rate interest rates two more times this year as it continues to fight inflation.
The New York survey showed broad-based improvement in activity so far this month.
The report said the New Orders Index rose to 3.1, up from May's reading of -28. At the same time, shipments increased to 22, up from -16.4.
However, the report did note further weakness in the labor market. The Number of Employees Index dropped to -3.6, down from May's level of 3.3.
The report also noted that inflation pressures are dropping swiftly. The Prices Paid Index fell to 22, down from the previous reading of 34.9.
Philadelphia's regional central bank showed mixed health within its manufacturing sector as inflation pressures remained flat.
The Philly Fed Survey said its New Orders Index dropped to -11, down from -8.9 in May. Meanwhile, the Shipments Index rose to 9.9, up from the previous reading of -4.7.
Unlike the New York region, Philly's manufacturing sector showed significant improvement in its labor market, with the Number of Employees Index rising to -0.4, up from May's reading of -8.6.
Looking at inflation, the report said that the Prices Paid Index fell slightly to 10.5, down from May's reading of 10.9.
