Gold price at daily highs as U.S. manufacturing PMI reveals sharp slowdown in the U.S. economy
(Kitco News) Gold prices were trading near daily highs, erasing all early-morning losses, after the release of preliminary manufacturing and service-sector sentiment data for June.
The latest flash PMI data signaled "the weakest upturn in U.S. private-sector output since January's Omicron-induced slowdown in June," research firm IHS Markit said in its latest report.
According to the report, the flash U.S. manufacturing Purchasing Managers (PMI) Index for June dropped to 52.4, marking a 23-month low. The June number missed the market's expectations of a reading of 56.0.
The service sector saw the PMI reading fall to 51.6 in June, marking a five-month low.
Any monthly reading above 50 points to an expanding sector, while anything below that shows contraction in activity.
"The pace of U.S. economic growth has slowed sharply in June, with deteriorating forward-looking indicators setting the scene for an economic contraction in the third quarter," said Chris Williamson, chief business economist at S&P Global Market Intelligence. "The survey data are consistent with the economy expanding at an annualized rate of less than 1% in June, with the goods-producing sector already in decline and the vast service sector slowing sharply."
Following the PMI data release, gold erased all early-morning losses and rose to fresh daily highs, with August Comex gold futures last at $1,844.10, up 0.31% on the day.