Gold Prices Remain Unchanged On The Day Following Strong ISM Service Data
(Kitco News)- Thegold market is seeing little reaction to stronger-than-expected momentum in the servicesector last month, according to the latest data from the Institute of SupplyManagement (ISM).
Monday, the ISMsaid its Non-manufacturing Purchasing Managers Index showed a reading of 59.9%in January, up from December's reading of 55.9%. The increase was well above expectationsas consensus forecasts were calling for a reading of 56.5%.
" The non-manufacturing sector reflected strong growth in January after two consecutive months of pullback. Overall, the majority of respondents' comments are positive about business conditions and the economy," the report said.
Readings above 50are seen as a sign of economic growth; the farther an indicator is above orbelow 50, the greater or smaller the rate of change.
Ahead of thereport, gold prices were relatively unchanged on the day, and have seen littlemovement in initial reaction to the data. April gold futures last traded at$1,336.20, down 0.08% on the day.
The components of the index, showed broad-based gains. The Business Activity Indexincreased to 59.8% last month, up from December's reading of 57.8%. At the same time, the New Orders Index increased to 62.7%, up from,December's reading of 54.5%.
Thereport said its Employment Index increased to 61.6% in January, up from theDecember reading of 56.3%.
Inthe inflation front, which could be positive for gold -- a traditionalinflation hedge - the Price Index increased to 61.9% last month, up fromDecember's reading of 59.9%.
By Neils ChristensenFor Kitco News
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