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Gold prices near session lows, can't catch a bid following mixed flash PMI data
(Kitco News) - The gold market is trading just off session lows, unable to find any bullish traction following mixed preliminary sentiment in the U.S. manufacturing and service sectors.
Thursday, IHS Markit said its flash U.S. manufacturing Purchasing Managers Index for September fell to reading of 60.5, down from the August reading of 61.1. However, the drop in in line with economist expectations.
Meanwhile the report noted weak momentum growth in the service sector as its PMI fell to a reading of 54.4, down from August’s reading of 55.1. Economists were expecting to see an unchanged reading.
“The pace of US economic growth cooled further in September, having soared in the second quarter, reflecting a combination of peaking demand, supply chain delays and labour shortages,” said Chris Williamson, chief business economist at IHS Markit.
“The slowdown was led by a cooling of demand in the service sector, linked in part to the Delta variant spread. However, while manufacturers have seen far more resilient demand, factories face growing problems in sourcing enough supplies and labor to meet orders. Supply chain delays show no signs of easing, with another near-record lengthening of delivery times in September.”
The latest economic data is not having much impact on gold as the market tests an important support level. December gold futures last traded at $1,752.70 an ounce, down nearly 1.5% on the day.
The gold can’t even find any traction as inflation pressure continue to rise. The report noted that costs rose at the fastest pace in four months in September was is the second highest increase on record.
