(Kitco News) - The gold market is struggling to hold on in positive territory and initial support around $2,600 an ounce even as the U.S. manufacturing sector continues to struggle with the Philadelphia Federal Reserve reporting a sharp drop in activity in December.
The regional central bank announced Thursday that its manufacturing business outlook for this month dropped to -16.4, compared to November’s reading of -5.5. The data was disappointing, as economists had expected a jump in activity to 2.9.
The survey has dropped to its lowest level since April 2023.
“The survey’s indicator for current general activity remained negative and fell further, while the indexes for new orders and shipments declined and turned negative. The employment index edged down but continued to suggest increases in employment overall. The prices paid index moved higher, while the prices received index declined,” the report said.
The gold market is not seeing much reaction to the latest economic data as it holds on to modest gains. Spot gold last traded at $2,600.60 an ounce, up 0.66% on the day.
