Gold Flat After Drop in Empire State Survey

Gold remain flat Monday despite a decline in growth within the New York regional manufacturing sector.

Monday the New York Federal Reserve said the general business conditions index in its Empire State manufacturing survey fell to a reading of -6.8 in October, following September’s reading of -2. Economists were expecting to see a reading of 1.1.

“For the third consecutive month, manufacturing firms in New York State reported a modest decline in business activity,” the report said.

Gold prices saw a modest boost in initial reaction to the data but they still remain slightly negative to unchanged. December gold last traded at 1,255.30 an ounce, down 0.02% on the day.

The yellow metal has been trading in a relatively tight range and has managed to hold key support above $1,250 an ounce.

Looking at some of the components of the report, the new order’s index managed to increase in October, but it still remains in negative territory, rising to a reading of -5.6.

via Kitco

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza