(Kitco News) - Gold is trading near session highs after the latest data showed the U.S. manufacturing sector beating expectations by holding steady last month, though prices shot higher in February.
The Institute for Supply Management (ISM) announced on Monday that its Manufacturing Purchasing Managers Index ticked down to 52.4 in February after posting a 52.6 reading in January. The headline number was higher than expected, as consensus forecasts looked for a reading of 51.8.
“In February, U.S. manufacturing activity remained in expansion territory, although growing at a slower pace than the month before,” said Susan Spence, MBA, Chair of the Institute for Supply Management’s Manufacturing Business Survey Committee, who noted that the overall economy continued in expansion for the 16th month. “Of the five subindexes that make up the PMI, two (New Orders and Production) indicated slower growth compared to the previous month, and the Employment and Inventories indexes remained in contraction.”
Spot gold spiked to a session high of $5,419.66 earlier in the session, and last traded at $5,342.05 per ounce for a gain of 1.20% on the day.
The components of the report showed a mixed but relatively stable picture, with New Orders and Employment improving while Production declined and Prices shot higher.
“The New Orders Index expanded for the second straight month after four straight readings in contraction, registering 55.8 percent, down 1.3 percentage points compared to January’s figure of 57.1 percent,” Spence said. “The February reading of the Production Index (53.5 percent) is 2.4 percentage points lower than January’s reading of 55.9 percent.”
“The Prices Index remained in expansion (or ‘increasing’ territory), registering 70.5 percent, an 11.5-percentage point jump from January’s reading of 59 percent and its highest reading since June 2022 (78.5 percent),” she noted. “The Backlog of Orders Index registered 56.6 percent, up 5 percentage points compared to the 51.6 percent recorded in January and its highest reading since May 2022 (58.7 percent). The Employment Index registered 48.8 percent, up 0.7 percentage point from January’s figure of 48.1 percent."
