Gold Prices Down As Momentum Falls In Manufacturing and Service Sector
(Kitco News) - Gold prices remain down on the day following disappointing preliminary manufacturing and service sector data.
Thursday, research firm IHS Markit, said that its flash Purchasing Managers Index for August, fell to a reading of 54.1, down from Julyâ€™s final reading of 55.3. Economists were calling for a reading of 55.9.
At the same time the firmâ€™s service sector PMI showed a reading of 55.2 following Julyâ€™s reading of 56. Economists were expecting a reading at 55.9.
According to the dat the manufacturing sector is seeing is slowest momentum in nine and the service sector is seeing its slowest growth in four months.
Gold prices were under pressure ahead of the data as prices were trading below critical support at $1,200 an ounce. The market has ignored the weaker than expected data with little movement in initial reaction. December gold futures last traded at $1,197.60 an ounce, down 0.47% on the day.
“The US economy lost a little pace in August, according to the flash PMI, but continued to grow at a solid rate. The PMI is indicative of the economy growing at an annualised rate of roughly 2.5%, down from a 3.0% indicated rate in July, said Chris Williamson, chief business economist at IHS Markit. “Output, new orders and employment growth all moderated, adding to signs that the economy has cooled after strong growth in the second quarter.”