Gold prices are holding steady near their session highs following a drop in momentum in the service sector, according to the latest data from the Institute of Supply Management (ISM).
Monday, the ISM said its Non-manufacturing Purchasing Managers Index showed a reading of 56.9% in May, down from April’s reading of 57.5%. The drop was slightly below expectations as consensus forecasts were calling for a reading of 57.1%.
Readings above 50 are seen as a sign of economic growth; the farther an indicator is above or below 50, the greater or smaller the rate of change.
Ahead of the report, gold prices were hovering just below a six-week high and were relatively unchanged in initial reaction. August Comex gold futures last traded at $1,283.30 an ounce, up 0.24% on the day.
Looking at 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 fell to 55.7, compared to the previous reading of 63.2%.