Gold prices are on the rise once again as a cocktail of weak U.S. data and intensifying trade tensions revives investor appetite for safe-haven assets. The metal, often seen as a barometer of market anxiety, responded positively to the disappointing ISM manufacturing PMI data released on Monday.
The reading came in at 48.5—below the forecast of 49.3 and slightly lower than April’s 48.7—underscoring the fragility of the U.S. industrial sector. The sub-50 reading marks continued contraction in manufacturing activity and raises concerns that economic momentum in the U.S. is decelerating more rapidly than anticipated.
For gold, which thrives in periods of uncertainty and economic stress, the data offered a compelling tailwind. Weak macro data tends to pull down Treasury yields and fuel expectations of easier monetary policy, both of which are traditionally supportive of gold prices.
For the rest of this column: https://www.kitco.com/opinion/2025-06-02/gold-finds-support-economic-woes-and-tariff-tensions-rekindle-safe-haven-demand