Gold prices remain stuck near $4,000 as ISM Manufacturing PMI hit four-year high

(Kitco News) – The gold market has been unable to break its gravity with the $4,000 level, and according to some analysts, better-than-expected manufacturing data could put more pressure on the yellow metal as it gives the Federal Reserve room to focus on the persistent inflation threat.

The Institute for Supply Management (ISM) announced on Monday that its Manufacturing Purchasing Managers Index fell to 55.6 in July, down from 53.3 in June, its highest reading since June of 2022. The headline number was higher than expected, as consensus forecasts looked for an unchanged reading of around 54.  

“In July, U.S. manufacturing activity remained in expansion territory, growing at its fastest rate in more than four years. Of the five subindexes that make up the PMI®, four grew faster compared to the previous month; the exception was the Inventories Index, which was down just 0.2 percentage point,” said  Susan Spence, of the ISM Manufacturing Business Survey Committee.

The gold market is not seeing any major reaction to the latest economic data as it continues to consolidate near support at $4,000 an ounce. Spot gold last traded at $4,028.20 an ounce, down 0.31% on the day.