Gold Prices Plummet as US Business Activity Surges

Spot gold prices dropped to $4,280 per ounce as the latest US data showed an improvement in business activity. According to S&P Global's flash Composite Purchasing Managers Index (PMI), the services sector accelerated for a fourth consecutive month in September, reaching its fastest rate in over five years.

The PMI rose to 58.4 in September, surpassing economists' expectations of 55.2. The report noted that the service sector business activity increased further, contributing to the overall growth.

The gold market reacted negatively to this news, leading to a decline in spot prices. This development is significant as it indicates a shift in investor sentiment and a potential impact on the precious metal's value.