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Gold Ignoring Weaker ISM Manufacturing Data For July

(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%.

 

By Neils Christensen of Kitco News; nchristensen@kitco.com

 

 

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 precious metal products, 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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