The window to buy gold remains open as we approach the weekend thanks to a new batch of U.S. economic data – but mixed messaging within that data mean you’ll need to act swiftly.
The latest Philadelphia Federal Reserve Manufacturing Index was released yesterday (Thursday) and on the face of it, painted a promising picture for the economy. The figures beat expectations by some margin, with a reading of 12 (signalling expansion) where economists had expected to see a contraction of -10, as has been the trend all year.
The reading of 12 stunned analysts, given July’s reading was -13.5 and the index has remained solidly in negative territory for 11 months on the bounce. Describing the surprising data, the Federal Reserve said, “The survey’s indicators for general activity, new orders, and shipments were all positive for the first time since May 2022. The price indexes remained near long-run averages.”
However, while new orders and shipment figures were positive, the report also had a few red flags contained within. These include a notable decline in employment, with that index falling from July’s reading of -1 to -6 in the latest update.
Future indexes also fell, meaning that there is a drop in positive sentiment for the six months ahead and further growth can’t be assumed. “The price indexes remained near long-run averages. Expectations for growth over the next six months were less widespread, as most of the survey’s future indexes remained positive but declined,” the Federal Reserve added.
This mixed bag of data is synonymous of the overall economic situation with waves of positive and negative data creating confusion as to what the Federal Reserve will do when it comes to rate hikes.
As a gold investor, this uncertainty is good news as it means you have the opportunity to buy the dip while prices remain in a holding pattern. In the wake of the manufacturing data release, the yellow metal was trading around £1,494 ($1,900) – the best price for those wanting to acquire more of the precious metal seen in four to five months. Make no mistake, that level can change quickly as other data emerges. You can’t afford to wait. With gold expected to reach a price high by December, now is the time to make your move.
Buy gold now.
