Gold prices are holding on to recent gains, seeing little reaction to positive economic data, following stronger than expected sentiment with in the Philadelphia manufacturing sector, according to the latest data from the Philly Federal Reserve.
The regional central bank said its current general activity in it manufacturing business outlook survey pushed back into positive territory, rising to a reading of 13.7, compared to February’s reading of -4.1.
The consensus expectations compiled by news organisations were expecting a reading of somewhere around 4.6.
However, the gold market is not paying much attention to economic data the day after the Federal Reserve lowered its growth estimates for this year and said it doesn’t expect to raise interest rates at all. April gold futures last traded at $1,316.80 an ounce, up more than 1 percent on the day.
The components of the report showed broad-based improvement with the region’s manufacturing sector.
The New Orders Index increased to a reading of 1.9, up from the previous level of -2.4. Meanwhile the Shipments Index rose to 20.0, up from February’s reading of -5.3.
However, labour market slowed slightly with the Number of Employee Index falling to 9.6, compared to February’s reading of 14.5.
Negative for gold, inflation pressures creeped lower with the Price Paid Index rising to 19.7, compared to February’s reading of 21.8.