The manufacturing index dropped significantly from August’s reading of 20.6, signaling a cooling trend in the regional industrial sector. Despite this contraction, Richard Deitz, Economic Research Advisor at the New York Fed, noted that manufacturing activity continues to advance modestly, supported by solid employment growth even as pricing pressures intensify.
Gold Stagnates as Empire State Survey Misses Growth Targets
A sharp decline in the New York Federal Reserve’s Empire State Manufacturing Survey to 7.6 has failed to ignite a safe-haven rally for gold. While the September figure landed well below the anticipated 14.8, the precious metal remains trapped in a defensive posture, trading down 0.34% at $4,283.60 per ounce.
Markets are largely ignoring the data, focusing instead on the Federal Reserve’s upcoming policy decision. Investors currently assign a 90% probability to a 25-basis-point rate hike, a prospect that has bolstered the U.S. dollar and pushed 10-year bond yields above 5% for the first time since 2008. Analysts suggest the current manufacturing weakness remains insufficient to deter the Fed from its hawkish trajectory, leaving gold vulnerable to ongoing upward pressure on interest rates.
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