(Kitco News) - Economic activity in the U.S. appears to be stable, but it is not seeing any strong momentum in either the manufacturing or service sectors, which could provide some support for gold as prices continue to trade at record highs within striking distance of $5,000 an ounce.
S&P Global reported on Friday that its flash Purchasing Managers Index (PMI) for the service sector showed a reading of 52.5 in January, unchanged from December’s reading. According to consensus forecasts, economists were expecting a slight uptick to 52.9.
The U.S. manufacturing sector also saw only a slight improvement with the PMI rising to 51.9, up from December’s reading of 51.8.
"The flash PMI brought news of sustained economic growth at the start of the year, but there are further signs that the rate of expansion has cooled over the turn of the new year compared to the hotter pace indicated back in the fall,” said Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, in the report. "The survey is signalling annualised GDP growth of 1.5% for both December and January, and a worryingly subdued rate of new business growth across both manufacturing and services adds further to signs that first quarter growth could disappoint.
The gold market is not seeing any significant momentum as it holds its ground, testing support around $4,950 an ounce. Spot gold last traded at $4,952.40 an ounce, up 0.34% on the day.
