Gold prices moving up following contraction in Philly Fed Survey to -3.3

NEW YORK (June 16)  The gold market is holding in positive territory attracting some buying interest as the Philladephia Federal Reserve said its regional manufacturing sector has contracted in June.

Thursday, the regional central bank said its manufacturing business outlook fell to -3.3 for June, down from May's reading of 2.6 The data missed expectations as consensus forecasts called for a rise to 5.1.

The Gold market is seeing some modest activity following the disappointing economic data. August gold futures last traded at $1,830 an ounce up 0.5% on the day.

Along with weaker activity, the report also noted persistent inflation. The Prices Paid index fell to 64.5, down from May’s reading of 78.9.

“The indicators for prices paid and prices received continue to indicate widespread price increases but decreased this month,” the report said.

Looking at other components of the report, the New Orders index dropped to -12.4, down from May’s reading of 22.1. At the same time, the Shipments Index fell to 10.8, down 35.3.

KITCO