(Kitco News) - The gold market continues to trade near record levels, just below $2,400 an ounce, and is largely ignoring a significant increase in manufacturing sector activity, according to the latest data from the Philadelphia Federal Reserve.;
On Thursday, the regional central bank said its manufacturing business outlook for March jumped sharply higher, rising to a reading of 15.5, up from March’s reading of 3.2. The data significantly beat expectations as economists were looking for a modest drop to 1.5.
The report noted that this was the third consecutive positive reading and the highest since April 2022.
“Almost 38 percent of the firms reported increases in general activity this month, while 22 percent reported decreases; 40 percent reported no change,” the report said.
The gold market ignores better-than-expected data and remains well supported by solid technical bullish momentum.
The components of the report showed a robust improvement in activity. The New Orders index increased to 12.2, from March’s reading of 5.4. At the same time, the Shipments index rose to 19.1, up from 11.4.
However, the sector’s labor market continues to lose momentum. The Number of Employees Index dropped to -10.7, down from March’s reading of -9.6.
The report also noted a significant rise in inflation pressures. The Prices Paid Index jumped to 23, up from 3.7 in March. Inflation pressures rose to their highest reading since December 2023.
