Gold Stalls at $4,000 as Resilient US Economy Defies Expectations

The gold market remains stuck in neutral as it holds support above $4,000 an ounce but fails to attract sustained bullish momentum. According to preliminary data from S&P Global, the US economy is showing resilience, with its flash Composite Purchasing Managers Index (PMI) rising to 53.6 in July, a new eight-month high.

The Services PMI also rose to 53.6, beating expectations of an unchanged reading, while the Manufacturing PMI slipped to 53.8 from 53.9 in June. Despite this mixed data, gold prices remain steady, with spot gold trading at $4,058.10 an ounce.

S&P Global's Chris Williamson noted that US businesses reported a good start to the third quarter, with employment rising for the first time in three months. However, the report highlighted that optimism remains strong, with business confidence in the year-ahead outlook reaching an eight-month high.