Spot gold at session low $4,550/oz after Philly Fed survey rises to 18.1 in March

Spot gold prices fell sharply to a session low of $4,550/oz following a stronger-than-expected Philadelphia Fed manufacturing survey for March, which rose to 18.1 versus forecasts of 10.0. The robust regional manufacturing data signals accelerating economic activity, pressuring gold prices below the key $4,600 support level and causing a 5.57% intraday drop. The Philly Fed survey highlighted broad expansion in manufacturing, with gains in current activity, new orders, and shipments. Price pressures remain elevated: the prices paid index climbed to 44.7, showing near 46% of firms faced rising input costs. Future activity indicators remain positive, with over 56% of respondents expecting growth over the next six months and employment outlooks also improving. The sharp selloff in gold reflects mounting confidence in the US economy, which could diminish gold’s safe-haven appeal amid expectations of continued Fed tightening. Key risks include potential shifts in inflation or monetary policy outlook that could reverse the recent price correction. Close monitoring of March inflation data and Fed commentary will be critical near-term catalysts. Despite the near-term bearish price action, persistent elevated input costs and sustained manufacturing growth keep inflation risks on the table, supporting gold’s strategic value as a hedge if economic momentum falters.