Gold Stagnates Near $4,000 as Manufacturing PMI Hits Four-Year High

The Institute for Supply Management reported its Manufacturing Purchasing Managers Index reached 55.6 in July, surpassing the anticipated 54. This figure marks the strongest performance for the sector in over four years. Susan Spence of the ISM Manufacturing Business Survey Committee noted that four of the five core subindexes accelerated during the month, with only the Inventories Index showing a marginal decline of 0.2 percentage points.

Despite the robust economic signal, the gold market remains largely indifferent to the data. Spot gold traded at $4,028.20 an ounce, reflecting a 0.31% dip. Analysts suggest that the strength of the manufacturing sector provides the Federal Reserve with additional leverage to maintain its focus on curbing inflation, a scenario that historically creates headwinds for non-yielding assets like bullion.