(Kitco News) – Gold prices have fallen, but hold on to recent gains, after the index of current general activity in the Federal Republic of Philadelphia manufacturing survey fell to almost zero in June.
latest report said the mood of the region's manufacturing sector fell to 0.3%. The consensus expectations prepared by news organizations expected a reading somewhere around 10.6.
Gold prices are out of reach, but still close to a five-year high after the Federal Reserve has suggested it is ready to cut interest rates to support the economic slowdown. The latest manufacturing data will support expectations of a cut in interest rates as early as July. The August gold futures last traded at $ 1
There have not been many positive news for the manufacturing sector this week. On Monday, the New York Fed said its production index saw the biggest decline in its history and dropped to a reading of 8.6 in June, down from May's reading of 17.8. The consensus forecasts required a fall to 12.1.
Based on the report's components, new orders fell to a 8.3 reading, down from May's 11 reading; Meanwhile, the shipping index dropped to 16.6 versus corn reading of 27.6.
The labor market also appears to have deteriorated with the number of employee indices falling to 15.4, down from maize reading of 18.2.
The report also showed a marked drop in inflationary pressures with the paid-up index falling to 0.6, down from May's reading of 17.5.
Disclaimer: The views in this article are the author's and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; However, neither Kitco Metals Inc. or the author guarantees such accuracy. This article is for informational purposes only. It is not an invitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article does not accept liability for loss and / or damage resulting from the use of this publication.