(Kitco News) - The gold market is trading in the middle of its daily range after the Philadelphia Federal Reserve said its manufacturing sector survey surprised to the upside this month.
On Thursday, the regional central bank said its manufacturing business outlook for March declined slightly, but still remained in expansionary territory with a reading of 3.2, compared to February’s reading of 5.2. The data was better than expected as economists were looking for a negative reading of -2.3 this month.
“This is only the index’s fifth positive reading since May 2022,” the Philly Fed wrote in the report. “Nearly 24 percent of the firms reported increases in general activity this month, while 21 percent reported decreases; 52 percent reported no change.”
The gold market saw little reaction to the upbeat manufacturing data. Spot gold last traded at $2,205.53, near the middle of its daily range and up 0.87% on the day, after posting a fresh all-time high above $2200 following yesterday’s Federal Reserve rate announcement.
The key components of the index were largely positive. The New Orders Index improved from -5.2 last month to 5.4 this month, while Business Conditions saw the most dramatic improvement, rising from 7.2 in February to 38.6 in March.
“The current shipments index ticked up 1 point to 11.4 in March, its highest reading since August 2022,” they said.
The labor market components also improved, with the Employment Index coming in at -9.6 after February’s -10.3 reading.
The report also noted a fall in inflation pressures, which will be encouraging for Fed watchers hoping for a June rate cut. The Prices Paid Index decreased to 3.70, down from February’s reading of 16.6.
“The survey’s broad indicators for future activity strengthened,” they noted, “suggesting more widespread expectations for growth over the next six months.”
