Empire State Factory Gauge Plunges, Exacerbating Economic Pressure

17 May, 2023

As at 10am, AEST

Gold Spot Price $AU2991

Silver Spot Price $AU35.70

Platinum Spot Price $AU1598

The Empire State Factory manufacturing survey released by the New York Fed has shocked economists as the gauge of manufacturing activity for April plummeted well below expectations. Initially projected to show a reading of negative 5, the index took a nosedive of 42.6 points, landing at a dismal negative 31.8. This drastic decline completely erased any progress made in previous months, leaving experts puzzled about the overall outlook for manufacturing and fuelling fears of an impending recession.

Meanwhile, discussions surrounding the US debt ceiling continue to be mired in delays, preventing any substantial decisions regarding an increase in the debt limit. While President Biden remains optimistic that a positive outcome will be reached this week, financial institution Deutsche Bank still considers the possibility of a US default. This uncertainty regarding the debt ceiling raises concerns, especially if the discussions extend until September this year. Such a prolonged delay could have severe repercussions on global share markets, potentially leading to widespread economic repercussions.

In the precious metals market, both gold and silver experienced a recent softening trend. Over the past 24 hours, prices peaked around US $2,020 per ounce before retreating to $1,990. This pullback indicates a temporary pause in the upward momentum of these precious metals. Furthermore, with the release of poor economic data from the United States continues to intensify the pressure on global share markets.

Market participants will closely monitor these developments, as they could have far-reaching implications for the overall economic landscape.

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*Not financial advice, please do your own research prior to any investment decisions you make.