Gold Dips After Feb. ISM Service-Sector Index Rises To 59.7%
Editor's Note: Kitco News has the best precious metals coverage in the world and is in the process of improving its mining news, so we want to hear from you. If you work in the mining sector please take this short survey to help us bring you the news you want.
(Kitco News) - Gold prices slipped after the Institute for Supply Management said Tuesday that its headline index for the service sector rose to 59.7% in February. Spot metal was last down $3.80 to $1,282.60 an ounce.
“This represents continued growth in the non-manufacturing sector, at a faster rate,” said Anthony Nieves, chair of the ISM non-manufacturing business survey committee.
The headline index stood at 56.7% in January. Consensus estimates compiled by news organizations called for the February index to be somewhere around 57.2% to 57.5%.
The report came out at the same time as the government’s report on sales of new homes, which also topped forecasts.
In the ISM survey, the index for non-manufacturing business activity/production rose to 64.7% from 59.7% in January, while the reading for new orders rose to 65.2% from 57.7%.
The employment index slid to 55.2% in February from 57.8% the prior month, while the prices index fell to 54.4% from 59.4%.
Readings above 50% in such diffusion indexes are seen as a sign of economic growth, and vice-versa. The farther an indicator is above or below 50%, the greater or smaller the rate of change.