Gold prices struggling as Empire State Manufacturing Survey falls to 7.1

NEW YORK (February 17) The gold market continues to struggle below $5,000 an ounce, and better-than-expected manufacturing data from the New York Federal Reserve could put additional downside pressure on the precious metal.

The regional central bank reported Monday that its Empire State Manufacturing Survey fell to 7.1 in February, compared to January’s reading of 7.7. The data significantly beat expectations, as economists were looking for a print of 6.4.

“Manufacturing activity continued to expand modestly in New York State in February. Firms remained optimistic that conditions would continue to improve, with employment expected to grow,” said Richard Deitz, Economic Research Advisor at the New York Fed.

The gold market is not seeing any significant reaction to the better-than-expected economic data, as the precious metal continues to face robust technical selling pressure. Spot gold last traded at $4,915.50 an ounce, down 1.5% on the day.

KitcoNews