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(Wallace Refiners) – The gold market remains under pressure, trading near its session lows as the price sees little reaction to better-than-expected momentum in the U.S. service, according to the latest data from the Institute for Supply Management (ISM).
Wednesday, the ISM said its nonmanufacturing index showed a reading of 55.3% for February, down from January’s reading of 58.7%. The data were weaker than expected, as consensus forecasts were calling for an unchanged reading.
Readings above 50% in such diffusion indexes are seen as a sign of economic growth and vice-versa. The farther an indicator is above or below 50%, the greater or smaller the rate of change.
The gold market can’t shake the renewed selling pressure despite weaker than expected U.S. economic data. April gold futures last traded at $1,709.30 an ounce, down 1.4% on the day.
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