Gold Prices Holding Gains Despite Modest Rise In Flash PMI Data
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(Kitco News) - Gold prices are holding on to modest gains Monday despite stronger-than-expected preliminary manufacturing and service-sector sentiment data.
Research firm IHS Markit, said in its latest report that its flash Purchasing Managers Index for July, rose to a reading of 53.2, up from June’s final reading of 52.0 Economists were expecting to see a modest rise, with consensus forecasts calling for a reading of 52.3.
According to the report, this is the strongest rise in the manufacturing sector since January.
At the same time the firm’s service sector PMI showed a reading of 54.2, unchanged from June’s reading of 54.2. Economists were expecting the index to rise to 54.3.
The firm noted that service-sector sentiment is unchanged after hitting a five-month high last month.
Gold prices were modestly higher heading into the report, benefiting from a weaker U.S. dollar and have seen little reaction following the data. August gold last traded at $1.256.60 an ounce, up 0.14% on the day.
“The July PMI surveys show an economy gaining growth momentum at the start of the third quarter, enjoying the strongest monthly improvement in business activity since January,” said Chris Williamson, chief business economist at IHS Markit. “The principal weak spot in the economy remained exports, with foreign goods orders dropping – albeit only marginally – for the first time since last September, often blamed on the strength of the dollar.”