Gold prices remain under pressure following weaker-than-expected Philly Fed manufacturing survey

New York (May 21)  The gold market continues to see some technical selling pressure, finding little traction as sentiment in the manufacturing sector remains extremely negative, according to the Philadelphia Federal Reserve.

The Philly Fed said that its manufacturing business outlook showed a reading of negative 43.1 in May up from April’s negative reading of 56.6. However, the data significantly missed expectations as consensus forecasts were calling for a reading negative 40.

Economic data has had little impact on gold as investor sentiment has been driving price action. Earlier this week gold prices pushed back to within striking distance of $1,800 but those gains have slowly eroded. In initial reaction to the latest data, June gold futures last traded at $1,741.80 an ounce, down 0.59% on the day.

KitcoNews