According to the Institute for Supply Management (ISM), the US manufacturing sector contracted for the second consecutive month in May, with the Manufacturing PMI registering at 48.7%, down 0.5% from April’s reading of 49.2%. “After breaking a 16-month streak of contraction by expanding in March, the manufacturing sector has contracted for the last two months at a faster rate in May. Two out of five subindexes that directly contribute to the Manufacturing PMI are in expansion territory, up from one in April. The New Orders Index moved deeper into contraction after one month of expansion in March.”

Gold edged higher after the release, trading back above $2,340/oz. The precious metal has been under pressure over the past two weeks, and today’s data may help to stabilize prices. Support remains at $2,280/oz.

GOLD ANALYSIS AND CHARTS

Jun 04 2024

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