Gold Ticks Up As Philadelphia Fed Manufacturing Index Edges Down But Beats Expectations In October
(Kitco News) - Gold prices ticked up after the index for current general activity in the Philadelphia Federal Reserve’s manufacturing business outlook survey posted a decline to 22.2 in October following a rebound to 22.9 in September, suggesting slightly slower economic growth.
The consensus expectations compiled by news organizations were for a reading of somewhere around 19.7.
Gold prices edged up to daily highs, with the December Comex gold futures last trading at $1,228.40, up 0.08% on the day. Prior to the publication, December gold was flat on the day, keeping the majority of the gains from earlier this week when gold surged to a 10-week high.
Little price action is normal at this point, according to Kitco’s senior technical analyst Jim Wyckoff.
“This week’s pause, or sideways trading on the daily chart, is normal given the solid gains scored last week. Bulls appear to be readying for their next upside advance,” Wyckoff said in his AM Roundup.
The Philadelphia Fed said that general activity indicators were near the same levels as last month and the growth outlook for the next six months remained optimistic.
“The firms reported continued growth in employment and an increase in the average workweek this month,” the Philadelphia Fed report said.
The index for new orders dropped by two points to 19.3 in October. The shipments index increased by five points to 24.5. The current employment index rose by two points to 19.5 and the index for the average work week increased to 20.8 from 14.6.
On the inflation front, the index for prices paid fell one point to 38.2 after losing 15 points in September.
By Anna GolubovaFor Kitco News
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