Home/Commodities/FX/Newsfeed

Gold Falls After Strong US ISM Manufacturing Report

Share Print 0

Gold market has trimmed some of its gains, falling from recent highs, after the U.S. manufacturing sector ended the year on a strong note, according to data from the Institute for Supply Management (ISM).

Wednesday, the ISM said its manufacturing index showed a reading of reading 59.7 for December, well above economists’ expectations and up compared to November’s reading of 58.2%. Consensus forecasts were calling for a reading of 58.1%.

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, gold prices were trading near their highest level in more than three months. Initial reaction has seen the yellow metal fall to unchanged levels on the day. February gold futures last traded at $1,317.50 an ounce, up 0.11% on the day.

“Comments from the panel reflect expanding business conditions, with new orders and production leading gains; employment expanding at a slower rate; order backlogs expanding at a faster rate; and export orders and imports continuing to grow in December,” the report said.

Looking at the components of the report, the New Orders Index rose to 69.4% up compared to the November reading of 64%. At the same time the Production Index showed a reading of 65.8%, up compared to November’s level of 63.9%.

via Kitco

Content 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 Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza

@alfonso_forex

,
Back to Top