Gold Remains Steady After IHS Markit PMI Data Mixed

Spot gold moved little after IHS Markit index reported its manufacturing Purchasing Managers Index rose this month but the service-sector one dipped. Spot gold was last up 40 cents to $1,282.70 an ounce.

Research firm IHS Markit said its flash U.S. manufacturing PMI for January increased to a reading of 54.9 from December’s reading of 53.8. Economists were expecting to see a reading of around 53.5.

Meanwhile, the firm's service-sector PMI reading dipped to a reading of 54.2 from the December reading of 54.4. Expectations were for a reading of 54.2.

“Manufacturing remained a bright spot as production volumes expanded at the fastest pace for eight months,” said IHS Markit. “Service providers signaled a sustained upturn in business activity during January, but the rate of growth eased to a four-month low.”

The composite index reading was 54.5, compared to 54.4 last month. Expectations were for 54.2.

“The latest reading was close to the average seen over the final quarter of 2018 (54.7) and signaled robust expansion of private sector output at the beginning of 2019,” said IHS Markit.

A monthly reading above 50 points to an expanding sector, while anything below that shows a contraction in activity.