(Kitco News) - Although gold prices are off their overnight highs, the precious metal continues its unrelenting rally in record territory near $4,200; it is paying little attention to better-than-expected manufacturing data from the New York Federal Reserve.
The regional central bank reported Wednesday that its Empire State Manufacturing Survey rose to 10.7 in October, a sharp improvement from September’s negative reading of 8.7. The data significantly beat expectations, as economists had forecast a reading of -1.8.
Despite the solid economic data, gold remains within striking distance of its session highs. Spot gold last traded at $4,188.30 an ounce, up more than 1% on the day.
The report noted that this is the third positive reading in the last four months. With the U.S. government shut down as Congress remains unable to pass new funding legislation, financial markets have been left mostly in the dark about the health of the economy.
The New York Fed’s manufacturing survey helps alleviate some concerns about slowing economic growth, with the components of the report showing broad-based strength.
The New Orders Index rose to 3.7, up from September’s reading of -19.6. At the same time, the Shipments Index increased to 14.4, up from -17.3 in the previous month.
The region’s labor market also improved, with the Number of Employees Index rising to 6.2 from -1.2 previously.
However, the improved activity is coming at a cost. The Prices Paid Index rose to 52.4, up from 46.1 in the previous month.
