Gold prices higher after mixed IHS Markit PMI data
(Kitco News) - Gold prices were modestly higher Friday after IHS Markit reported that its manufacturing Purchasing Managers Index fell this month while the service-sector one climbed, leaving the composite index at a 10-month high. Spot gold was last up $2.40 cents to $1,564.80 an ounce.
Research firm IHS Markit said its flash U.S. manufacturing PMI for January decreased to a reading of 51.7, a three-month low, from December’s reading of 52.4. Meanwhile, the firm's service-sector PMI reading climbed to a reading of 53.2, a 10-month high, from the December reading of 52.8.
Expectations had been for both to be near last month’s levels.
The composite index reading was a 10-month high of 53.1, compared to 52.5 last month.
“U.S. private-sector firms indicated a faster expansion of business activity in January, with the pace of growth accelerating to a 10-month high,” the report said. “The upturn was driven by a sharper increase in service-sector output….”
A monthly reading above 50 points to an expanding sector, while anything below that shows a contraction in activity.