Make Kitco Your Homepage

Gold Prices Down As Momentum Falls In Manufacturing and Service Sector

Kitco News

(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 July’s final reading of 55.3. Economists were calling for a reading of 55.9.

At the same time the firm’s service sector PMI showed a reading of 55.2 following July’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.”

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.

Precious Metal Charts

Follow Kitco News