(Kitco News) - The gold market continues to see solid selling pressure as the Federal Reserve Bank of Philadelphia reported a strong rebound within its manufacturing sector.
The regional central bank said its manufacturing business outlook index for June rose to 10.3, compared to May’s reading of -0.4. The data was better than expected, as economists had been looking for a reading of 9.8 this month.
“Responses to the June Manufacturing Business Outlook Survey suggest overall expansion in the region’s manufacturing activity. The indicators for current activity, new orders, and shipments rose and were all positive. On balance, the firms continued to indicate overall increases in prices,” the report said.
The gold market has been struggling to find solid ground since Wednesday afternoon after the Federal Reserve signaled the potential for a rate hike this year in its updated economic projections.
Spot gold last traded at $4,246.80 an ounce, down 0.21% on the day.
The report showed a broad-based improvement. The New Orders Index increased to 27.3, up from May’s negative reading of 1.7. At the same time, the Shipments index rose to 14.9, compared to the previous increase of 4.9.
The report also noted an improvement in the labor market as the Number of Employees Index rose to 7.9, up from May’s reading of -2.8.
However, inflation pressures continue to rise. The report said the Price Paid Index rose to 53.2, up from 47.9.
Although the Philly Fed has seen a rebound in its manufacturing sector, the U.S. economy is experiencing uneven activity. Earlier in the week, the New York Federal Reserve reported slowing activity in its manufacturing region.
