Gold price holding within striking distance of $3000 after Empire State Survey drops to -20

NEW YORK (March 17) The gold market continues to consolidate just below $3,000, but some analysts expect the precious metal to attract safe-haven demand after data from the New York Federal Reserve showed a significant contraction in the region’s manufacturing sector.

The regional central bank reported that its Empire State Manufacturing Survey dropped to -20.0, down sharply from February’s reading of 5.7. The data was significantly weaker than expected, as economists had forecast a reading of -1.9.

The New York manufacturing sector is experiencing its worst decline in a year.

So far, the gold market has shown little reaction to the disappointing data. Spot gold last traded at $2,990.40 an ounce, up 0.20% on the day.

The report noted a growing stagflation threat as input prices rose at the fastest pace in two years. The Prices Paid Index increased to 44.9, up from February’s reading of 40.0; this marks the third consecutive month of rising input prices.

The report's components showed broad-based weakness. The New Orders Index dropped to -14.9, down from the previous reading of 11.4, while the Shipments Index fell to -8.5.

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