Today, the sixth survey of 2012 for the Philly Fed Manufacturing Index for June came out: this survey estimates the U.S. manufacturing conditions that continued to contract during the month; the Philly Fed index fell from -5.8 in May to -16.6 in June. Indexes of prices also declined that may suggest the price pressures were moderated. Currently, the American stock markets are traded sharply down. Gold and silver prices are plunging.
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 June compared with the manufacturing conditions during May 2012. This survey also estimates the general employment condition that has remained steady but shorter hours.
Today’s report might adversely affect not only American stock markets, energy prices including natural gas and crude oil but also gold and silver. This news along with the recent decision of the FOMC not to introduce another stimulus plan is likely to drag down commodities prices as it suggests the U.S economy isn’t progressing.
Currently the major American stock market indexes including the S&P500 and Dow are sharply falling; major energy commodities prices such as crude oil prices are also plunging; precious metals prices are thumbing down.
Current gold price, short term futures (July 2012 delivery) is traded at $1,565.5 per t oz. a $50.3 decrease as of 12:14*.
Current silver price, short term futures (July 2012 delivery) is traded at $26.865 per t oz. a $1.588 decrease as of 12:14*.
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