Gold Holds the Line at $5,000 as U.S. Manufacturing Slips Toward Contraction

A Warning Sign from the Manufacturing Sector The latest economic data from the New York Federal Reserve sent a subtle but important signal about the state of the U.S. economy. The Empire State Manufacturing Survey, one of the earliest monthly snapshots of manufacturing activity, slipped unexpectedly into contraction territory in March. The index printed –0.2, a sharp drop from February’s 7.1 reading, and well below economists’ expectations of 4.0. On the surface, the number may not look dramatic. But the direction matters. Manufacturing activity moving from expansion to contraction is often an early indicator that economic momentum is beginning to slow. And while the broader market reaction was muted, experienced investors understand that these types of shifts often appear before…