(Kitco News) – Bearish sentiment appears to be finally catching up with the gold market as stronger than expected activity in the manufacturing and service sectors and technical selling pressure keep prices near session lows.
Friday, the S&P Global Flash U.S. Composite PMI reported a healthy rise in activity within and service sector. The report said that the manufacturing PMI data came in at 51.8, up from August’s reading of 51.5. The data was better than expected; according to consensus estimates, economists were looking for a reading around 51.
The report said that activity in the manufacturing sector is at a two-month high. Meanwhile, activity in the service sector also shows solid momentum rising to 49.2 up from August’s reading at 43.7. Economists were looking for a print around 45.5.
Activity in the service sector is at its highest level in three months, the report said. The gold market is unable to find any bullish momentum and prices see sharp losses Friday. December gold futures last traded at $1,653 an ounce, down 1.67% on the day.