Spot gold trades near $4,460/oz after ISM Manufacturing PMI rises to 54

Kitco Media
By Ernest Hoffman
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Spot gold trades near $4,460/oz after ISM Manufacturing PMI rises to 54 teaser image

(Kitco News) - Gold is trading near session lows after the latest data showed the U.S. manufacturing sector beating expectations last month, with prices also moderating in May.

The Institute for Supply Management (ISM) announced on Monday that its Manufacturing Purchasing Managers Index rose to 54 in May, its highest reading since May 2022, after posting a 52.7 reading in April. The headline number was higher than expected, as consensus forecasts looked for a reading of 53. 

“In May, U.S. manufacturing activity remained in expansion territory, growing at a faster pace compared to the month before,” said Susan Spence, Chair of the ISM Manufacturing Business Survey Committee. “Of the five subindexes that make up the PMI, the New Orders index indicated faster growth compared to the previous month, the Supplier Deliveries index stayed the same, the Production Index grew at a faster rate, and the Employment and Inventories indexes remained in contraction, though both improved.”

Spot gold fell to a session low of $4,447.86 around 10 a.m. ET, and last traded at $4,460.05 per ounce for a loss of 1.77% on the day.

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The components of the report showed an improving picture in key areas, with New Orders, Production and Employment improving from April while Prices moderated. 

“The New Orders Index expanded for the fifth consecutive month after four straight readings in contraction, registering 56.8 percent, up 2.7 percentage points compared to April’s figure of 54.1 percent,” Spence noted. “The May reading of the Production Index (54.3 percent) is 0.9 percentage point higher than April’s reading of 53.4 percent. The Prices Index remained in expansion (or ‘increasing’ territory), registering 82.1 percent, a 2.5-percentage point decrease from April’s reading of 84.6 percent. The Backlog of Orders Index registered 52.2 percent, up 0.8 percentage point compared to the 51.4 percent recorded in April. The Employment Index registered 48.6 percent, up 2.2 percentage points from April’s figure of 46.4 percent.”

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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