 | Get all the essential market news and expert opinions in one place with our daily newsletter. Receive a comprehensive recap of the day's top stories directly to your inbox. Sign up here! |
(Kitco News) -
The gold market fell to session lows after the latest data on the U.S. manufacturing sector showed it contracted for the ninth consecutive month.
The Institute for Supply Management (ISM) manufacturing index came in at 46.4% for July, after posting a 46% print in June. Market consensus calls were expecting a reading of 46.9%.
Readings above 50% in such diffusion indexes signify 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 briefly spiked before falling to fresh lows on the session. Spot gold last traded at $1,945.55, down 1.00% on the day.
The employment index fell further into contraction, down 3.7 percentage points to 44.4% in July. This comes ahead of the highly anticipated July nonfarm employment report to be released Friday.
The index for new orders remained in contraction territory but climbed 1.7 percentage points to 47.3%.
The prices index was also in contraction territory, but rose 0.8 percentage points to 42.6% from June’s figure of 41.8%.
“The U.S. manufacturing sector shrank again, but the uptick in the PMI® indicates a marginally slower rate of contraction,” said Timothy Fiore, Chair of the ISM Manufacturing Business Survey Committee. “The July composite index reading reflects companies continuing to manage outputs down as order softness continues.”
Fiore noted that of the six biggest manufacturing industries, “only one — Petroleum & Coal Products — registered growth in July.”
