Gold Ignoring Weaker ISM Manufacturing Data For JulyBy Kitco News
Monday August 01, 2016 10:03
(Kitco News) - Gold prices are ignoring disappointing manufacturing data from the Institute for Supply Management (ISM).
The ISM said that its manufacturing Purchasing Managers Index showed a reading of 52.6 in July down from June’s reading of 53.2%. According to consensus forecasts, economists were expecting to see a modest drop to 53.1%
Readings above 50 are seen as a sign of economic growth; the farther an indicator is above or below 50, the greater or smaller the rate of change.
December Comex gold is relatively changed from levels ahead of the report; gold futures last traded at $1,356.20 an ounce, down $1.30 on the day.
Looking at the components of the index, new orders index fell to a reading of 56.9%, down slightly from June’s reading of 57%; at the same time the production index increased to 55.4%, up from the previous level of 54.7%.
The manufacturing sector also continues to shed jobs as the employment index fell to 49.4%, down from June’s reading of 50.4%.
Inflation pressures also remain muted as the price index showed a reading of 55%, down from last month’s reading of 60.5%.