[ad_1]
(Kitco News) – Gold prices continue to show decent gains, close to the highest level in three months, while confidence in the services sector rose for the second time in six months, according to the latest data from the company. Institute for Supply Management (ISM).
On Wednesday, the ISM said its non-manufacturing index posted a reading of 56.9% for May, up from 55.5 in April. The data was stronger than expected, with consensus forecasts of 55.6% reading.
"Most respondents are optimistic about general economic conditions, but there are still concerns about rates and employment resources," the report said.
Values greater than 50% in these diffusion indices are considered as a sign of economic growth and vice versa. The higher or lower an indicator is 50%, the greater the rate of change.
The data help mitigate growing fears of recession, which have caused a rise in gold prices. Although gold prices are above their session highs, they remain positive that day. The latest gold futures in August traded for the last time at $ 1,338.80 an ounce, up 0.79% on the day.
The elements of the report are a welcome balm to allay the concerns raised by the American labor market. The employment index, closely monitored, showed good growth last month, going from 53.7% to 58.1% in April.
Katherine Judge, Senior Economist at CIBC Capital Markets, noted that the index of employment is at its highest level since the end of 2018.
Earlier Wednesday, investors were shocked by the fact that the payroll sector, ADP, said the private sector had created only 27,000 new jobs in May.
According to other data from the ISM, the index of commercial activity rose from 59.5% to 59.2% in April.
Inflationary pressures were relatively weak last month as the price index dropped to 55.4% from 55.7% in April.
Paul Ashworth, chief US economist at Capital Economics, said he did not think the growth of the service sector would last.
"Unfortunately, given the collapse of regional Fed services surveys, which tend to lead the ISM, we are not convinced that this improvement in the ISM index will last. We think it could soon be close to the 53 mark, "he said.
Warning: The opinions expressed in this article are those of the author and may not reflect those of the author. Kitco Metals Inc. The author has endeavored to ensure the accuracy of the information provided. However, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes. It is not a solicitation to exchange products, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept any liability for losses and / or damages resulting from the use of this publication.
[ad_2]
Source link