Gold price see little movement following mixed flash PMI data
(Kitco News) - Gold prices continue to struggle to find any bullish traction following mixed momentum in the U.S. manufacturing and service sectors.
Tuesday, IHS Markit said its flash U.S. manufacturing Purchasing Managers Index for November increased to 59.1, up from October’s reading of 58.4. The data was relatively in line with expectations.
The report said that activity in the manufacturing is at a two-month high.
Meanwhile, activity in the service sector appears to be slowing. The report said that the Flash PMI for the service sector dropped to 57.0, down from October’s reading of 58. Economists were expecting the index to rise to 59.1.
The report said that activity in the service sector has fallen to a two-month low.
“The US economy continues to run hot. Despite a slower rate of expansion of business activity in November, growth remains above the survey’s long-run pre-pandemic average as companies continue to focus on boosting capacity to meet rising demand. However, the slowdown underscores how the economy is struggling to cope with ongoing supply constraints,” said Chris Williamson, chief business economist at IHS Markit, in the report.
The gold market is seeing little reaction to the latest economic data. December gold futures last traded at $1,791.80 an ounce, down 0.80% on the day.
While economic activity remains positive, the report notes that inflation pressures continue to build, a positive for the gold market. The report noted that input costs within both the manufacturing and service sectors are at new highs.
“The pace of selling price inflation matched October’s series record high, as firms sought to pass on greater costs to their customers,” the report said.