Gold Back Above $1.300 An Ounce Following Drop In Empire State Manufacturing Survey

Gold prices have pushed above $1,300 an ounce as momentum in the New York region’s manufacturing sector weakens.

Friday, the New York Federal Reserve said its Empire State manufacturing survey’s general business conditions index dropped to a reading of 3.7 in March, down from February’s reading of 8.8. Consensus forecasts were calling for a rise to 10.1.

According to the report, this is the third consecutive month the index has remained below 10, "suggesting that growth has remained quite a bit slower so far this year than it was for most of 2018."

Gold prices were consolidating gains ahead of the manufacturing data and jumped above $1,300 in initial reaction. April gold futures last traded at $1,302.30 an ounce, up 0.56% on the day.

The components of the report showed consistent weakness. The New Orders Index dropped to a reading of 3, down from February’s reading of 7.5; meanwhile shipments dropped to 7.7, down from the previous level of 10.4.The employment within the region’s manufacturing sector was a modest bright spot, The Number of Employees Index jumped to 13.8, up from February’s reading of 4.1.

Positive for gold’s long-term outlook, inflation pressure crept higher with the Prices Paid Index increasing to 34.1, up from the previous reading of 27.1