(Kitco News) - The gold market is holding on to solid gains above $2,400 an ounce; however, prices are not seeing much reaction to weak-than-expected activity in the New York Region’s manufacturing sector, according to the latest data from the New York Federal Reserve.
Monday, the regional central bank said its Empire State Manufacturing Survey, dropped to 6.6, down from June’s reading of 6.0. According to consensus estimates, economists were looking for a slightly better reading at -5.5.
“Manufacturing conditions remained somewhat sluggish in New York State in July, though orders held steady and shipments edged slightly higher. Employment continued to contract, and capital spending plans were weak. However, firms remained fairly optimistic that conditions would improve in the months ahead,” said Richard Deitz, Economic Research Advisor at the New York Fed in the report.
The regional manufacturing sector has been in contraction territory for the last eight consecutive months.
The gold market is not seeing any new momentum as it holds last week’s gains. August gold futures last traded at $2,419.90 an ounce, roughly unchanged on the day.
While the headline number missed expectations, the components showed mixed results; the New Orders Index rose to -0.6, up from -1.0 in June. Meanwhile, the Shipments Index rose to 3.9, up from the previous reading of 3.3.
The U.S. labor market also improved slightly, with the Number of Employees Index rising to -7.9, up from -8.7 reported in June.
In one positive element for the gold market, inflation remains stubbornly elevated; the Prices Paid Index rose to 26.5, up from July’s reading of 24.5.
