Kitco analyst Neils Christensen has included data that affects the price of Gold today. According to the latest data released by the Institute for Supply Management (ISM), gold prices continue to rise steadily, although the momentum in the manufacturing sector has slowed somewhat. The ounce price of gold is approaching the $ 1800 level.
What Does the Data Mean?
The ISM announced on Monday that the production index’s figure for April was 60.7%, against the March percentage of 64.7%. Consensus estimates predicted a level around 65.0%. However, the numbers have not materialized as expected.
The manufacturing economy continued to expand in April. The Survey Committee Members reported that their companies and suppliers continue to struggle to meet rising demand rates due to the effects of coronavirus (COVID-19), which limits the availability of parts and materials.
The following point is particularly noticeable in the comments made on the data:
“The latest record-long lead times, the widespread shortage of critical essential materials, rising commodity prices and difficulties in transporting products continue to affect all segments of the manufacturing economy. Worker absenteeism, short-term closures due to shortage of parts and difficulties in filling open positions continue to be issues that limit the production-growth potential. ”
Gold prices have seen technical buying momentum for most of the morning and are maintaining gains in the initial reactions to the latest economic data. Gold futures for June were traded at $ 1,793.50 per ounce, up 1.47% on the day.
Looking at some components of the report, the New Orders Index fell to 64.3% compared to March, which was 68%. At the same time, the Production Index declined from 68.1% in March to a reading of 62.5%.
The data also showed a lower momentum in the labor market. The Employment Index declined from its previous level of 59.6% to 55.1%. Although the momentum slows, inflation continues to rise. The report shows that the Price Index rose from the previous reading of 85.6% to 89.6%.