Full Article: Gold Prices Remain Near Session Lows Following Drop In ISM Non-Manufacturing Sector
BY: Neils Christensen
(Kitco News) – Gold remains under pressure, near session lows as the U.S. service sector showed weak growth momentum last month, according to the latest data from the Institute of Supply Management (ISM).
Tuesday, the ISM said its Non-manufacturing Purchasing Managers Index showed a reading of 57.4% in November, down from October’s reading of 601%%. Consensus forecasts were calling for a modest drop to a reading of 59.2%.
“Comments from the survey respondents indicate that the economy and sector will continue to grow for the remainder of the year,” the report said.
Gold prices were already near session lows ahead of the data and have seen little change in initial market reaction. February gold futures last traded at $1,271.10 an ounce down 0.54% on the day.
Looking at the components of the report, the Business Activities index showed a reading of 61.4% last month, down from October’s reading of 62.2%. At the same time, the New Orders Index came in at 58.7%, down from October’s reading of 62.8%.
The closely watched employment index, which economists use to estimate Friday’s official government employment data, dropped to a reading of 55.3%, down from the previous reading of 57.5%.
Price pressures also remained fairly muted with the Price Index falling to a reading of 60.7%, down from the previous reading of 62.7%.