Gold prices slip below $1,800 as ISM services PMI rises to 56.5 in November
(Kitco News)- The gold market is losing ground, pushing below $1,800 an ounce as the US services sector sees stronger-than-expected activity in November, according to the Institute for Supply Management (ISM).
On Monday, the ISM said its Manufacturing Purchasing Managers’ Index rose to 56.5 last month, compared with November’s reading of 54.4%. According to consensus estimates, economists wanted it to fall to 53.5.
“Growth continues to be at a faster pace in the services sector, which has grown in all but two of the past 154 months. The sector saw an uptick in growth after falling back in the previous two months. The growth rate picked up in November. growth in business activity and employment,” said Anthony Nieves, Chairman of the ISM Services Business Survey Committee.
The gold market was seeing technical selling pressure ahead of the report after the price rose to a five-month high. However, the precious metal lost more ground in the initial reaction to the latest economic data.
February gold futures last traded at $1,789.30 an ounce, down more than 1% on the day.
Broad-based components indicated higher in the index as price pressures begin to move away from higher levels. The Business Activity Index rose to 64.7%, compared to October’s reading of 55.7%. at the same time, the New Orders Index rose to 56%, compared to the previous reading of 56.5%.
Looking at inflation, the report said price pressures remain high but are showing signs of easing. The Price Paid index fell to 70%, down from 70.7% in October.
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