On Wednesday, IHS Markit said its flash U.S. manufacturing purchasing managers index for September rose to 53.1, from 53.17 in August. The data was also better than expected. Economists expected to see a reading of 52.5.
IHS noted sentiment in manufacturing is at its highest level in 20 months.
At the same time, the business services sector PMI reading showed a reading of 54.6, down from the August reading of 55. Economists expected the index to enter 54.6, 6. IHS said sentiment was at a two-month low.
The latest economic data weighs on gold prices, which fell to session low after the report. December gold futures last traded at $ 1,876.60 down 1.63% on the day.
“US businesses reported a strong end to the third quarter, with demand increasing at an increasing rate to fuel a further recovery in production and employment,” he said.
However, Williamson added that there are still many risks to the US economy as the end of the year approaches.
“The question now arises as to whether the strong performance of the economy can be sustained in the fourth quarter. Covid-19 infection rates remain a major concern and social distancing measures continue to dampen the overall pace of expansion, especially in consumer services, ”he said. “Uncertainty over the presidential election has also intensified, dampening business optimism for the coming year.”
Warning: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. This is not a solicitation to effect an exchange of commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for any loss and / or damage resulting from the use of this publication.