Gold Stalls as Services Sector Resilience Tempers Bullish Outlook

The Institute for Supply Management reported its Services Purchasing Managers Index dipped to 54.0 in June from 54.5 in May. While the figure aligned with economist consensus, the underlying data signals a shift in economic momentum. Steve Miller, Chair of the ISM Services Business Survey Committee, noted that only 14 industries reported growth, down from 17 the previous month, while reports of contraction increased.

Market participants are currently balancing these economic indicators against the broader interest rate environment. Expectations for a Federal Reserve rate hike before year-end remain a primary headwind for the precious metal, though these projections have moderated following last week’s soft nonfarm payrolls report, which recorded only 57,000 new jobs. Additionally, the Inventories Index has hit its second-lowest level since October 2025, suggesting that the earlier trend of aggressive corporate stockpiling is losing steam.