Weak Philly Fed manufacturing data providing little support for gold price
(Kitco News) -Weaker-than-expected manufacturing data is having littleimpact on gold prices as markets focus on growing momentum in the U.S. labormarket.
Thursday,Philadelphia Federal Reserve said its manufacturing business outlook fell areading of 23.8 in October, down from its September reading of 30.7. The data missedexpectations as consensus forecasts were calling for a reading around 25.1.
Thelatest economic data has been unable to provide any bullish momentum to thegold market. Spot gold prices last traded at $1,784.60 an ounce, up 0.13% onthe day. While the Philly Fed Survey supported the gold market, a lot ofattention is focused on weekly jobless claims, which fell to a new pandemic lowThursday.
Althoughthe headline number was disappointing, the components of the report showed somepositive trends in the region' manufacturing sector. The report said that the NewOrders Index increased to 30.8, up from 15.9 in September. Meanwhile, The ShipmentsIndex increased to 30.0, up a tick from September's level of 29.9.
Thelabor market also showed positive growth. The Number of Employees Indexincreased to 30.7, up from 26.3 in September.
Positivefor the gold market, inflation pressures continue to build. The report saidthat the Prices Paid Index increased to 70.3, up from 67.3 in September.
By Neils ChristensenFor Kitco News
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