Gold near highs after New York manufacturing index misses expectations again in May | Kitco News

Gold near highs after New York manufacturing index misses expectations again in May

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(Kitco News) - Manufacturing activity in the New York region showed continued weakness this month even as inflation pressures eased, according to the latest figures published by the New York Federal Reserve.

The regional central bank said on Wednesday that its Empire State manufacturing survey declined to -15.6 in May, after coming in at -14.3 in April. The data was worse than expected, as consensus forecasts called for a -10 reading.

“Manufacturing activity continued to contract in New York State in April, and employment continued to decline,” said Richard Deitz, Economic Research Advisor at the New York Fed. “Optimism about the outlook for future business conditions remained subdued.”

Gold prices shot to session highs following the 8:30 am EDT release, which came out at the same time as the U.S. CPI and Retail Sales reports, and the precious metal continues to trade near the top of its daily range.

Spot gold last traded at $2374.11 per ounce at the time of writing, and is up 0.69% on the day.

The components of the report showed weakness in most areas of the region’s manufacturing sector.

The new orders index was unchanged at -16.5, the report said, indicating “an ongoing significant decline” in orders, while the shipments index improved slightly to -1.2.

“The inventories index came in at 2.0, indicating that inventories were steady, and the delivery times index inched down to -9.1, suggesting that delivery times shortened,” the New York Fed said. “The index for number of employees came in at -6.4, and the average workweek index moved up to -5.8, pointing to an ongoing decline in employment levels and hours worked.”

The report showed that optimism about the outlook remained subdued. “The index for future business conditions dipped five points to 16.7, with only 37 percent of respondents expecting conditions to improve in the next six months,” they wrote. “The outlook for employment growth weakened noticeably. The capital spending index fell to 6.7, suggesting that capital spending plans remained soft.”

The report did show some easing of inflation pressures. “The prices paid index retreated five points to 28.3, and the prices received index declined three points to 14.1, indicating that price increases moderated slightly,” they said.

The moderating inflation numbers are seen as a positive for gold as they could enable the Federal Reserve to ease its restrictive monetary policies and advance the timing of rate cuts.

Ernest Hoffman

Ernest Hoffman is a Crypto and Market Reporter for Kitco News. He has over 15 years of experience as a writer, editor, broadcaster and producer for media, educational and cultural organizations. Ernest began working in market news in 2007, establishing the broadcast division of CEP News in Montreal, Canada, where he developed the fastest web-based audio news service in the world and produced economic news videos in partnership with MSN and the TMX. He has a Bachelor's degree Specialization in Journalism from Concordia University. You can reach Ernest at 1-514-670-1339.

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Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Gold near highs after New York manufacturing index misses expectations again in May - Kitco NEWS

economy

Gold near highs after New York manufacturing index misses expectations again in May

By Ernest Hoffman

Kitco News
The Leading News Source in Precious Metals

Ernest Hoffman

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Gold near highs after New York manufacturing index misses expectations again in May - Kitco NEWS

economy

Gold near highs after New York manufacturing index misses expectations again in May

By Ernest Hoffman

Kitco NewsThe Leading News Source in Precious Metals

Ernest Hoffman

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