Gold Sells Off Amid Improved US Business Sector Data

Spot gold prices fell to $4,280/oz on Wednesday following the release of U.S. data showing an improved business sector. The S&P Global flash Composite Purchasing Managers Index (PMI) rose to 58.4 in September, exceeding expectations and marking the fourth consecutive month of growth.

The service sector PMI also saw improvement, reaching 58.7 in September, up from August's reading of 56.5. Meanwhile, the manufacturing sector PMI increased to 57.0, surpassing the consensus forecast of 53.6.

According to Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, US business activity is growing at its fastest rate in over five years. He noted that supply chain bottlenecks and rising input costs are contributing to a lack of operating capacity and higher prices.