(Kitco News) - After a slow start this morning, the gold prices have managed to push back into positive territory back above $4,600 an ounce, and is attracted some more bullish momentum following disappointing manufacturing data.
The Institute for Supply Management (ISM) announced on Friday that its Manufacturing Purchasing Managers Index remained unchanged at 52.7% in April. The headline number was weaker than expected, as economists had been looking for further growth, with a reading of 53.1.
The report said that the ongoing war in Iran remains the factor driving sentiment in the manufacturing sector.
“In this second month of the Iran War (at the time of data collection), 31 percent of the comments were positive and 69 percent negative, with a positive to negative sentiment ratio of 1 to 2.2. Among comments, the war was mentioned in 47 percent and tariffs in 18 percent. As was the case last month, some panelists referenced both topics within a single comment or in mixed sentiment,” said Susan Spence, Chair of the ISM Manufacturing Business Survey Committee, in the report.
After seeing steady losses overnight, the gold market started to attract some bullish attention following the North American open and is trading at session highs in initial reaction to the disappointing ISM data. Spot gold last traded at $4,657.33 an ounce, up 0.75% on the day.
The ISM report also highlighted growing stagflation fears as inflation pressures are rising alongside weaker activity. The Prices Index jumped to 84.6%, up from March’s reading of 78.3%.
