Gold Prices Rebound as US Manufacturing Data Disappoints

Gold prices rebounded on Tuesday after data showed US manufacturing activity expanded at a slower pace than expected in August. The Institute for Supply Management's Manufacturing Purchasing Managers Index (PMI) fell to 54.6 last month, down from 55.6 in July and below the consensus forecast of 55.3.

Kitco News reported that while manufacturing remained in expansion territory, several key measures lost ground, including new orders, backlog, and imports. The only subindex that showed an improvement was supplier deliveries, indicating a continued slowdown in the supply chain.

Silver prices, which are closely tied to gold, also saw some volatility. Spot gold initially dropped to $4,326.27 per ounce shortly after 9 a.m. ET, but began rising following the 10 a.m. ET release of the data. It last traded at $4,366.69 per ounce, down 1.86% on the day.

The report's components showed declines in production, new orders, and employment, while prices held steady at July's elevated level. The new orders index expanded for the eighth consecutive month after four straight readings in contraction, registering 53.7%, down 3 percentage points from July's 56.7%.