Gold Prices Holding Gains Following Weak Empire State Survey Data
(Kitco News)- The gold market is holding on to modest gains after theEmpire State manufacturing survey's general business conditions index fell to areading of 19 in September, down from 25.6 in August, according to a New YorkFederal Reserve report Wednesday.
Consensus expectations compiled by various newsorganizations had been for a reading of around 23.2. The report noted that sentiment in the manufacturing sector is at its lowest point in five months.
The gold prices have been trading in modestly positiveterritory through the overnight session and is seeing little movement ininitial reaction to the New York Fed data. December gold futures last traded at $1,203.60an ounce, up 0.22% on the day.
According to some economists markets remain concerned as theU.S. government looks to impose more tariffs on imported Chinese goods.
Looking at the components of the index, the report said thatnew orders fell to a reading of 16.5, down from August's level of 17.1; at thesame time shipments fell to a reading of 14.3, down from the previous level of25.7.
In some positive news, the labor market in the New Yorkmanufacturing sector improved in September. The number of employees indexincreased to 13.3, up slightly from August's reading of 13.1.
The report also noted a rise in inflation pressures, whichcould be positive for gold as it has traditionally been seen as a hedge againstinflation. The prices paid index increased to 46.3 up from August's reading of45.2.
By Neils ChristensenFor Kitco News
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