Gold prices push higher as ISM PMI remains in contraction territory at 46.7

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(Kitco News) – The gold market is standing firm in positive territory as the U.S. manufacturing sector continues to contract and inflation pressure starts to rise, according to the latest data from the Institute for Supply Management (ISM).

Friday, the ISM said its Manufacturing Purchasing Managers Index remained unchanged last month at 46.7%. The data missed expectations; according to consensus estimates, economists were looking for an increase of 47.9%.

The gold market is seeing renewed buying momentum in initial reaction to the latest data. Spot gold futures last traded at $2,045.30 an ounce, up 0.47% on the day. Analysts have noted that so far, gold has found solid resistance around $2,050 an ounce.

The components of the report showed a solid contraction in the manufacturing sector. The New Orders Index rose slightly to 48.3%, up from October’s reading of 45.5%. At the same time, the Production Index dropped to 48.5%, down from the previous level of 50.4.

The U.S. labor market also lost momentum in November, with the Employment Index dropping to 45.8%, down from the previous reading of 46.8%.

Although the manufacturing sector continues to cool, the inflation threat remains as prices picked up last month. The report said the Prices Index rose to 49.9%, up from October’s reading of 45.1%.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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