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(Kitco News) – According to the latest data from the Institute for Supply Management (ISM), gold prices are rising steadily and approaching $ 1,800 an ounce, despite a slight slowdown in the manufacturing sector.
The ISM said Monday that its manufacturing index for April was 60.7%, up from 64.7% in March. The data fell short of expectations, as the consensus forecast was that the value would be around 65.0%.
“In April, the manufacturing economy continued to grow. The survey committee members said their companies and suppliers continue to struggle with growing demand due to the impact of the coronavirus (COVID-19) limiting the availability of parts and materials, ”said Timothy Fiore, chairman of the ISM Manufacturing Business Review Committee. report.
“Recent record-breaking lead times, widespread shortages of critical basic materials, rising commodity prices and shipping difficulties continue to affect all segments of the manufacturing economy. Absence of workers at work, short-term stoppages due to lack of spare parts and difficulties in filling open vacancies continue to be problems limiting production growth potential, ”he added.
Gold prices have had some technical buying momentum for most of the morning and are holding on to their gains in the initial reaction to the latest economic data. June gold futures were last traded at $ 1,793.50 an ounce, up 1.47% on the day.
Looking at some of the components of the report, the new orders index fell to 64.3% from 68% in March. At the same time, the manufacturing index fell to 62.5% from 68.1% in March.
The data also showed lower dynamics in the labor market. The employment index fell to 55.1% from the previous level of 59.6%.
Although momentum is slowing, inflation continues to rise. The report said that the price index rose 89.6% from the previous value of 85.6%.
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