Gold at session highs after ISM Services PMI falls to 53.6 in April as industries brace for oil shock 

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By Ernest Hoffman
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Gold at session highs after ISM Services PMI falls to 53.6 in April as industries brace for oil shock  teaser image

(Kitco News) – The U.S. service sector declined in line with expectations last month amid growing concern over the eventual impact of higher energy prices through the supply chain, according to the latest data from the Institute for Supply Management (ISM).

The ISM announced on Tuesday morning that its Services Purchasing Managers Index came in at 53.6 in April, down from March’s reading of 54. The data was slightly worse than expected, as economists were looking for a reading of 53.7. 

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.

Gold prices set fresh session highs following the 10 a.m. release. Spot gold last traded at $4,582.81 per ounce for a gain of 1.30% on the daily chart.

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“April’s Services PMI features the fourth month in a row with an increase in the 12-month PMI average, up 0.8 percentage point from 51.7 percent in December 2025 to its current 52.5 percent,” said Steve Miller, Chair of the ISM Services Business Survey Committee. “The Prices Index was flat but remained above 70 percent, amid sustained higher oil and fuel costs. The Supplier Deliveries Index indicated slower performance compared to March, coming in at 3.9 percentage points above its 12-month average. Increases in the Business Activity, Supplier Deliveries, and Employment indexes were more than offset by a 7.1 percentage point drop in the New Orders Index.”

The Business Activity Index remained in expansion territory in April, increasing 2 percentage points to 55.9 percent from March’s reading of 53.9 percent, while the Employment Index contracted for the second month in a row with a reading of 48 percent, a 2.8-percentage point increase from the 45.2 percent recorded in March.

“Ongoing commentary that increased ordering is related to getting ahead of future price increases seems to have been more applicable to March than April,” Miller added, “however, the Backlog of Orders Index remained in expansion territory, well above its 12-month average of 46.4 percent.”

He also noted several comments from respondents “that they have yet to see petroleum price increases impacting petroleum-related products, so we expect to see continued elevated readings for the Prices Index for several months — regardless of when the conflict in Iran ends — due to these costs working their ways through global supply chains.”

Kitco Media

Ernest Hoffman

Ernest Hoffman is a Crypto and Market Reporter for Kitco News. He has over 15 years of experience as a writer, editor, broadcaster and producer for media, educational and cultural organizations. Ernest began working in market news in 2007, establishing the broadcast division of CEP News in Montreal, Canada, where he developed the fastest web-based audio news service in the world and produced economic news videos in partnership with MSN and the TMX. He has a Bachelor's degree Specialization in Journalism from Concordia University. You can reach Ernest at 1-514-670-1339.

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