Gold Holds Near Highs as Empire State Survey Falls to 5.7 in June

The Federal Reserve Bank of New York reported on Monday that its Empire State Manufacturing Survey rose to 5.7 in June, down sharply from May's four-year high of 19.6, missing consensus estimates of 13.2. The weaker-than-expected manufacturing data coincided with gold prices holding near session highs, trading at $4,344.30 an ounce, up nearly 3% on the day. Analysts noted that slowing economic activity combined with stubborn inflation pressures could support gold as a hedge against rising stagflationary risks.

Empire State Survey Falls Short of Expectations in June

The regional central bank's survey significantly missed consensus estimates, with economists forecasting a reading of 13.2. Richard Deitz, Economic Research Advisor for the central bank, stated: "Following strong growth in May, manufacturing activity in New York State increased modestly in June. Employment grew for the fifth straight month, but price increases remained elevated and supply availability worsened."

Gold Prices Rise Nearly 3% Amid Economic Data

The gold market did not see any major reaction to the disappointing manufacturing data, as traders continued to focus on news that the U.S. and Iran have agreed to a peace deal. Some analysts said that weak economic data, coupled with stubborn inflation pressures, should provide support for gold as a hedge against rising stagflationary risks. Spot gold last traded at $4,344.30 an ounce, up nearly 3% on the day.

FAQ

What was the Empire State Manufacturing Survey reading in June?

The Empire State Manufacturing Survey posted a reading of 5.7 in June, down sharply from May's four-year high of 19.6 and missing consensus estimates of 13.2.

How did gold prices perform following the survey release?

Spot gold traded at $4,344.30 an ounce, up nearly 3% on the day, holding near session highs despite the weaker-than-expected manufacturing data.