Manufacturing activity in the State of New York dropped more than expected in January, results of the latest The Empire State Manufacturing Survey showed on Tuesday. The New York Federal Reserve reported factory activity across the region fell to 6.5 points from December's 9.0 points, while market analysts anticipated a slight decrease to 8.1 in January. However, any reading above the 0 point-level points to expansion in the manufacturing sector. The General Business Conditions Index declined slightly to 6.5 from 7.6 registered in December, remaining in the expansionary territory for the third straight month.
Meanwhile, the New Orders Index dropped to 3.1, following the preceding month's 10.1 points, whereas the Shipments Index remained unchanged at 7.3, pointing to robust shipment growth. In addition, the Delivery Time Index and the Unfilled Orders Index advanced to -2.5 and -1.7 in January, respectively. The Inventories Index jumped 16 points to 2.5, indicating the first increase in inventory level since the middle of 2015. The Future Business Conditions Index held steady at 49.7 in January, after rising sharply in the wake of Trump's victory in the US presidential election. The Prices Paid Index surged 14 points to 36.1, reaching its highest level since 2014 and pointing to increasing inflation.
Upcoming fundamental releases: A busy day for fundamentals
A set of high-impact data is bound to shake markets on Thursday, starting with the EU minimum bid rate at 12:45 GMT and followed by a set of other significant data just after at 13:30 GMT, when the ECB press conference kicks off and US data – building permits, Philly Fed manufacturing index as well as unemployment claims - comes out. The day will end with crude oil inventories at 16:00 GMT.
Gold still corrective
Daily chart: The daily chart shows Gold being on a retracement of the broken upper boundary of the senior channel down pattern. The pair has additionally broken the junior channel that had to break about a week ago. Ground is set at 1,191.73, because with more risk at 1,184.64/1,181.87, where losses are ultimately to be cut. Resistance lies at 1,198.77 and then 1,211.87 with risk more to the downside rather than above, meaning that the 1,184.64/1,181.87 area is the most appropriate target for today.Traders gradually reduce bullishness
Spreads (avg,pip) / Trading volume / Volatility
Market participants foresee the price of Gold being around 1,232 in April
Traders who were asked regarding their longer-term views on gold between December 18 and January 18 expect, on average, to see the metal around 1,232 in early April. Generally, 44% (+2%) of participants believe the price will be above 1,250 in ninety days. Alongside, 34% (-2%) of those surveyed reckon the currencies will trade in the range between 1,000 and 1,200 over the next three months.