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(Kitco News) - (Kitco News) - After last week's solid gains for gold, the precious metal is seeing some profit-taking as the New York Federal Reserve reports showed stronger-than-expected activity in its regional manufacturing survey.
Monday, the regional central bank said that its Empire State manufacturing survey's general business conditions index fell to 1.1 in July, down from June's reading of 6.6. However, the data significantly beat expectations as economists were looking for the index to fall into negative territory at 3.4.
The better-than-expected data is keeping a lid on gold prices as the market tries to hold support above $1,950 an ounce. August gold futures last traded at $1,954.70 an ounce, down 0.47% on the day.
The components of the report showed mixed activity. The New Orders Index rose to 3.3, up from the previous reading of 3.1. At the same time, the Shipments Index dropped to 13.4, down from June's reading of 22.
The region's labor market also saw robust momentum, with the Number of Employees Index rising to 4.7, up from the previous reading of -3.6.
The report also noted that inflation pressures are starting to ease, with the Price Paid Index dropping to 16.7, down from June's reading of 22.0.
According to some market analysts, this is a fairly negative report for gold as economic activity remains healthy in expansion territory and inflation pressures continue to ease.
