Gold Prices Unfazed by Strong Manufacturing Data, Stuck Near $4,000

The gold market remains stuck near $4,000 an ounce despite better-than-expected manufacturing data. The Institute for Supply Management (ISM) reported that its Manufacturing Purchasing Managers Index (PMI) hit a four-year high of 55.6 in July, exceeding expectations. According to the ISM, U.S. manufacturing activity grew at its fastest rate since June 2022, with four out of five subindexes showing improvement.

The strong PMI reading may give the Federal Reserve more room to focus on inflation concerns. However, gold prices have not reacted significantly to the news, remaining near $4,000 support. Spot gold last traded at $4,028.20 an ounce, down 0.31% on the day.