Gold Market Holds Gains as US Services Sector Surpasses Expectations

The gold market is holding its gains after the latest US economic data showed an improvement in the services sector, while the manufacturing sector weakened.

The S&P Global Composite Purchasing Managers Index (PMI) rose to 56.0 in August, beating expectations of a reading of 53.2 and surpassing July's reading of 54.5.

The service sector PMI jumped to 56.8, exceeding forecasts of 54.0, while the manufacturing sector PMI fell to 53.2 from 53.9 in July.

According to Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, 'US business is booming, with firms reporting the fastest output growth for over four years so far in the third quarter as the expansion picked up further momentum in August.'