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(Kitco News) – Gold prices remain under pressure, but are out of their session lows after the Philadelphia Federal Reserve reported weaker than expected sentiment in its regional manufacturing sector.
The Philadelphia Federal Reserve on Thursday said its outlook for manufacturing activity fell to 17.2 in August, down from the July reading of 24. Data missed expectations as consensus forecast called at a reading around 21.
“Indicators for current activity, new orders, shipments and employment remained positive, although all were down from their readings in July,” the report said.
Despite the disappointing economic data, gold saw no significant movement in the initial reaction. December gold futures last traded at $ 1,950 an ounce, down about 1% on the day.
Examining some of the components of the report, the survey indicated that the new orders index fell to 19, from 23 in July; meanwhile, the shipments index fell to 9.4, down from the previous reading of 15.3.
The report noted a sharp decline in the labor market in the region’s manufacturing sector. The number of employees index fell to 9, down sharply from the July level of 20.1.
Inflationary pressure eased as the price paid index fell to 15.3, down from the previous level of 15.7.
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