Gold prices in striking distance of $1,600 despite strong rise in New York Fed survey

New York (Feb 18)  Gold prices are holding on to gains, pushing close to $1,600 an ounce even as sentiment in the New York manufacturing sector improves significantly in February.

Tuesday the New York Federal Reserve said that its Empire State manufacturing survey’s general business conditions index rose to a reading of 12.9 in February, up from January’s reading of 4.8. The report solidly beat expectations as consensus forecasts were calling for a rise to 5.8.

However, the gold market is ignoring economic data as investors focus on the growing uncertainty surrounding the spread of the coronavirus and its impact on the global economy. Weaker equity markets around the world is creating a safe-haven bid in the yellow metal. April gold futures last traded at $1,592.60 an ounce, up 0.38% on the day.

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