Gold Falls Further Below $1,300 As Philadelphia Fed Manufacturing Index Jumps
(Kitco News) - Gold prices edged down after the index for current general activity in the Philadelphia Federal Reserve’s manufacturing business outlook survey rose to 23.8 in September from 18.9 in August, suggesting quicker economic growth.
The consensus expectations compiled by news organizations were for a reading of somewhere around 17.2.
Gold remained under pressure following the release, with December Comex gold last trading at $1,292.70, down 1.80% on the day. Prior to the publication, gold was trading lower, after hitting a three-week low, as traders were still digesting Wednesday’s hawkish Fed announcement.
“The survey’s current indicators for general activity, new orders, and shipments increased this month and suggest a broadening of growth,” the Philadelphia Fed said. “Price pressures also picked up, according to the reporting firms. The survey’s future indicators suggest that manufacturers have generally grown more optimistic over the past three months.”
The index for new orders rose to 29.5 in September from 20.4 in August. The shipments index also increased to 37.8 from 29.4. The index for number of employees fell to 6.6 from 10.1 and the index for the average work week dropped to 11.9 from 18.8.
On the inflation front, the index for prices paid advanced to 34.4 from 21.1. The index for prices received was also up at 22.8 from 13.5.