Philly Fed survey can't derail gold's momentum

(Kitco News) - The gold market is once again holding its own above critical near-term support, even as the U.S. manufacturing sector appears to be more resilient than economists had expected, according to the latest regional data from the Philadelphia Federal Reserve. The regional central bank said Thursday that its Manufacturing Business Outlook Survey for September came in at 37.8, down from last month’s five-year high of 47.4. The data were better than expected, as economists were looking for a reading of 31.3. “Responses to the September Manufacturing Business Outlook Survey suggest overall expansion in the region’s manufacturing activity,” the report said. “The survey’s broad indicators for future activity continued to suggest expectations for growth over the next six months.” The gold market is not seeing any significant reaction to the positive economic data. The precious metal continues to recover from Wednesday’s selloff after the Federal Reserve raised interest rates by 25 basis points and Federal Reserve Chair Kevin Warsh signaled that the central bank still has work to do to bring inflation down to its 2% target. Spot gold last traded at $4,364.90 an ounce, up more than 2% on the day. Neils Christensen Neils Christensen has a diploma in journalism from Lethbridge College and has more than a decade of reporting experience working for news organizations throughout Canada. His experiences include covering territorial and federal politics in Nunavut, Canada. He has worked exclusively within the financial sector since 2007, when he started with the Canadian Economic Press. Neils can be contacted at: 1 866 925 4826 ext. 1526 nchristensen at kitco.com @KitcoNewsNOW Tags: gold gold price us economy US manufacturing sector Philly Fed Manufacturing Survey Federal Reserve Philadelphia Fed manufacturing inflation Share Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.