Today, the fifth survey of 2012 for the Philly Fed Manufacturing Index for May was published: this survey estimates the U.S. manufacturing conditions changed direction from growth to contraction during May; the Philly Fed index tumbled down from +8.5 in April to -5.8 in May. Indexes of prices also decreased that may suggest the price pressures were moderated. Currently, the American stock markets are traded down. Gold and silver prices are spiking.
This survey also estimates the general employment condition has also declined during the time of the survey. If this indicator provides a good estimate of the economic progress of the U.S, it may suggest a slowdown in the manufacturing progress of the U.S during May compared with the manufacturing conditions during April 2012.
In the previous monthly survey, the news of the Philly Fed Manufacturing Index didn’t seem to affect the financial markets including stocks, forex and commodities plausibly due to the small change in the index.
Today’s report might adversely affect the American stock markets, energy prices including natural gas and crude oil but may be among the factors to pull up gold and silver because it rekindles the speculation around another QE program as the U.S economy is slowing down.
Currently the major American stock market indexes including the S&P500 and Dow are moderately declining; major energy commodities prices such as crude oil prices and also dropping, while precious metals prices are spiking.
Current gold price, short term futures (June 2012 delivery) is traded at $1,575.6 per t oz. a $39 increase as of 17:49*.
Euros to US dollar exchange rate is currently traded slightly up at 1.2721 a 0.04% increase as of 17:49*.
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