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Gold price edges down as ISM Manufacturing Index slightly disappoints

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(Kitco News) Gold prices ticked down as the headline manufacturing index from the Institute for Supply Management came in below expectations in September.

The ISM manufacturing index came in at 55.4% in September while market expectations were pricing in to see 56.4%. The monthly figure marked a 0.6-percentage-point decline from August reading of 56%.

“This figure indicates expansion in the overall economy for the fifth month in a row after a contraction in April, which ended a period of 131 consecutive months of growth,” the report said.

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.

Following the release, gold prices edged down from near daily highs. December Comex gold futures were last trading at $1,904.50, up 0.47% on the day. 

The employment index was at 49.6% in September, up from 46.4% in the prior month. The prices index rose to 62.8% following August’s reading of 59.5%.

The index for new orders declined to 60.2% from 67.6%, while the production index inched down to 61% from 63.3% in August.

“Among the six biggest manufacturing industries, Food, Beverage & Tobacco Products remains the best-performing sector, with Fabricated Metal Products and Chemical Products growing strongly. Computer & Electronic Products and Transportation Equipment expanded moderately. Petroleum & Coal Products remained a headwind to PMI performance,” the report said.

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