(Kitco News) - U.S. economic data continues to have little impact on the gold market as prices continue to hover around $1,900 an ounce.
Gold is treading water Friday as optimism remained relatively steady in the U.S. manufacturing sector and improved significantly in the service sector, according to flash estimates from IHS Markit.
The research firm said U.S. manufacturing Purchasing Managers Index for October dropped to a reading of 53.3, up from September’s reading of 53.2. Consensus forecasts were calling for a reading around 53.5.
Meanwhile the firm’s service-sector PMI reading rose to a reading of 56, up from September’s reading of 54.6. The data was better than expected with consensus forecasts calling for a reading around 54.7.
The data are having little impact on gold prices. December gold futures last traded at $1,910.30 an ounce, up 0.30% on the day.
“The US economy looks to have started the fourth quarter on a strong footing, with business activity growing at a rate not seen since early 2019. The service sector led the expansion as increasing numbers of companies adapted to life with COVID19, while manufacturing continued to report solid growth amid rising demand from households and businesses,” said Chris Williamson, chief business economist at IHS Markit.