( Kitco News) – The gold markets appears
to be ignoring disappointing regional
manufacturing data and instead putting
more focusing on stronger than expected
retail sales data.
Friday, the New York Federal Reserve
reported a drop in its Empire Sate
Manufacturing Survey for July. According
to the report the business activity index
fell to a reading of 0.55%, down from last
month’s reading of 6.01.
“Business activity was flat for New York
manufacturing firms over the last month.
The general business conditions index has
been in a seesaw pattern around zero for
the past several months,” the report said.
The survey saw broad-based declines as
the new orders index fell into negative
territory to -1.82, down from last month’s
reading of 10.90. The shipments index fell
to a reading of 0.7%, down from June’s
reading of 9.32.
The labor market showed a sharp drop,
declining to a reading of 4.40, from
June’s flat reading.
Finally inflation pressures saw a modest
rise as the prices paid index rose to
18.68, up slightly from June’s reading of
The much weaker than expected data
could be helping the gold market find
some support as prices have managed to
hold around relatively unchanged levels
following a massively stronger than
expected June retail support.
August gold futures last traded at $
1,330.50 an ounce, down $1.70 on the
Released at the same time as the Empire
State Survey, retail sales in the U.S.
increased by 0.6% during June, the
Commerce Department said Friday.
Meanwhile, sales excluding autos were up
0.7%. The data were well above
expectations for a 0.1% rise and 0.4%
rise respectively.
By Neils Christensen of Kitco News;
Follow @Neils_C
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