Gold prices remain under pressure but still off its lows following despite data that points to renewed momentum in the U.S. manufacturing sector.
Wednesday, the Institute for Supply Management said its Purchasing Managers Index pushed further into expansion territory in February, rising to a reading of 57.7%, following January’s reading of 56%.
According to consensus forecasts, economists were expecting to see a modest rise to 56.2%. Readings above 50% in such diffusion indexes are seen as a sign of economic growth, and vice-versa. The farther an indicator is above or below 50%, the greater or smaller the rate of change.
Ahead of the report, growing expectations for an interest rate hike in March was pressuring gold but prices are unchanged following the stronger-than-expected report; April gold futures last traded at $1,240 an ounce, down more than 1% on the day.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.