Spot gold prices surged to near-session highs following the release of the New York Empire State manufacturing survey, which showed stronger-than-expected growth in the region. The New York Federal Reserve reported that the survey index rose to 25.5 in October, the highest level in nearly five years, up from 7.6 in September. This result exceeded market expectations, which had anticipated a decline to 10.3.
The report highlighted improvements in key manufacturing indicators, with new orders and shipments increasing significantly. The new orders index jumped 21 points to 23.2, while the shipments index climbed 16 points to 13.1. However, the data also revealed challenges, including longer delivery times, worsening supply availability, and persistent inflationary pressures. The prices paid index, though slightly lower than its four-year high, remained elevated at 59.5, indicating ongoing cost pressures.
Employment in the sector showed modest growth, with the number of employees index holding steady at 10.3 and the average workweek index at 9.1. Despite the positive manufacturing data, optimism about future conditions moderated. The index for future business conditions dropped eight points to 21.0, suggesting that while firms expect conditions to improve, their outlook is less optimistic than in recent months.
As of the latest trading session, spot gold was priced at $4,154.16, up 1.20% on the day. The surge in gold prices reflects investor response to the mixed manufacturing data, which combined signs of economic strength with lingering concerns over inflation and supply constraints.