Gold Holding Gains After Drop In ISM Non-Manufacturing PMI
(Kitco News) - Gold prices are holdingsteady near their session highs following a drop in momentum in the servicesector, according to the latest data from the Institute of Supply Management(ISM).
Monday, the ISM saidits Non-manufacturing Purchasing Managers Index showed a reading of 56.9% in May, down from April'sreading of 57.5%. The drop was slightly below expectations as consensusforecasts were calling for a reading of 57.1%.
Readingsabove 50 are seen as a sign of economic growth; the farther an indicator isabove or below 50, the greater or smaller the rate of change.
Aheadof the report, gold prices were hovering just below a six-week high and wererelatively unchanged in initial reaction. August Comex gold futures lasttraded at $1,283.30 an ounce, up 0.24% on the day.
Lookingat the components of the report, the business activity index fell to 60.7%,down from April's reading of 62.4%; at the same time the new orders index fellto 55.7, compared to the previous reading of 63.2%.
However,the report also showed growing momentum in the labor market, but the impact ofthis component has been significantly reduced because it comes after Friday's disappointingemployment report, which showed 138,000 jobs created last month. The employmentindex rose to a reading of 57.8%, compared with April's reading of 51.4%.
Inflationpressures fell last month with the price index showing reading 49.2%, down fromApril's reading of 57.6%.
By Neils ChristensenFor Kitco News
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nchristensen@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities,securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.  |