Gold Prices Down As Momentum Falls In Manufacturing and Service Sector
(Kitco News)- Gold pricesremain down on the day following disappointing preliminary manufacturing andservice sector data.
Thursday,research firm IHS Markit, said that its flash Purchasing Managers Index for August,fell to a reading of 54.1, down from July's final reading of 55.3. Economistswere calling for a reading of 55.9.
Atthe same time the firm's service sector PMI showed a reading of 55.2 following July'sreading of 56. Economists were expecting a reading at 55.9.
Accordingto the dat the manufacturing sector is seeing is slowest momentum in nine andthe service sector is seeing its slowest growth in four months.
Goldprices were under pressure ahead of the data as prices were trading belowcritical support at $1,200 an ounce. The market has ignored the weaker thanexpected data with little movement in initial reaction. December gold futureslast traded at $1,197.60 an ounce, down 0.47% on the day.
“The US economy lost a little pace in August, according tothe flash PMI, but continued to grow at a solid rate. The PMI is indicative ofthe economy growing at an annualised rate of roughly 2.5%, down from a 3.0%indicated rate in July, said Chris Williamson, chief business economist at IHSMarkit. “Output, new orders and employment growth all moderated, adding tosigns that the economy has cooled after strong growth in the second quarter.”
By Kitco NewsFor Kitco News
Follow @kitconewsnow
news@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 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.