(Kitco News) - The gold market continues to struggle below $5,000 an ounce, and better-than-expected manufacturing data from the New York Federal Reserve could put additional downside pressure on the precious metal.
The regional central bank reported Monday that its Empire State Manufacturing Survey fell to 7.1 in February, compared to January’s reading of 7.7. The data significantly beat expectations, as economists were looking for a print of 6.4.
“Manufacturing activity continued to expand modestly in New York State in February. Firms remained optimistic that conditions would continue to improve, with employment expected to grow,” said Richard Deitz, Economic Research Advisor at the New York Fed.
The report noted that this marks the fourth positive reading in five months.
The gold market is not seeing any significant reaction to the better-than-expected economic data, as the precious metal continues to face robust technical selling pressure. Spot gold was last trading at $4,915.50 an ounce, down 1.5% on the day.
The report's components showed some mixed results. The New Orders Index posted a reading of 5.8, down from January’s 6.6. At the same time, the Shipments Index dropped to -1.0, down sharply from January’s 16.3.
The report also noted an improvement in the U.S. labor market. The Number of Employees Index rose to 4, up from January’s negative reading of -9.
Positive for gold, inflation pressures remain elevated, with the Prices Paid Index rising to 49.1 from 42.8.
