(Kitco News) - The gold market continues to recover from Wednesday’s sharp selloff as it largely ignores mixed activity within the U.S. manufacturing and services sectors.
S&P Global said its flash Purchasing Managers Index showed continued contraction in the manufacturing sector while the service sector continued to grow.
According to the preliminary data published Thursday., the service sector PMI rose to 55.3, up slightly from 55.2 reported in September. The data was slightly better than expected as economists were looking for a reading of 55.0.
The report said that activity in the service sector rose to a two-month high in October.
Meanwhile, the manufacturing sector continues to struggle with the PMI showing a reading of 47.8, up slightly from the previous reading of 47.3. Economists were projecting a reading of around 47.5.
“October’s flash US PMI survey signaled a further solid rise in business activity to mark a robust start to the fourth quarter. Growth was driven solely by the service sector, however, as manufacturing output contracted for a third month running,” the report said.
The gold market has bounced off Wednesday’s lows but is not reacting much to the latest economic data. December gold futures last traded at $2,745.90 an ounce, up 0.62% on the day,
