(Kitco News) – Gold prices are trading in relatively neutral territory, holding near a five-month high as the New York Federal Reserve reported stronger than expected activity in its regional manufacturing sector.
Monday, the regional central bank said its Empire State manufacturing survey’s general business conditions index surged higher to 30.9 in November, up significantly from October’s reading of 19.8. The data was also better than expected, as consensus forecasts were calling for a reading around 22.1.
“Forty-three percent of respondents reported that conditions had improved over the month, while 12 percent reported that conditions had worsened,” the report said.
The gold market is seeing little movement following the positive economic data. December gold futures last traded at $1,869 and ounce, up 0.03% on the day.
Looking at some of the components of the report, the New Orders Index increased to 28.8, up from October’s level at 24.3. At the same time the Shipments Index jumped sharply higher to 28.2, up from the previous reading at 8.9.
The report also said that the labor market improved significantly with the Number of Employees Index rise to 26.3, up from 17.1. According to the report, this is the past pace of growth on record.
Positive for gold prices, inflation pressures continue to rise. The report said that the Prices Paid Index, rose to 83.0, up from October’s reading at 78.7. The report also noted that businesses are passing on their rising costs to consumers. The Prices Received Index rose to a record high of 50.8, up from 43.5.
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