Gold futures and gold price in the spot market rose after the Institute of Supply Management’s business-condition index (ISM) indicated contraction in the US manufacturing sector in May.
Comex gold futures for August delivery last quoted were up by 0.6% above the $1,400 mark, while spot gold now is traded at $1,415.10 per ounce, recording an increase by 1.93%.
The ISM reported a decline in its Purchasing Manger Index (PMI) by 1.7 from 50.7 to 49.0 in May. Any value below 50 indicates a contraction in the industrial sector.
This data should support the Feds continued bond purchasing program for at least the next month without slowing their pace. Still, the weekly jobless claims report in the US due to release on Friday should influence the feds decisions and give us a clearer view. Thereby, these hints on the US monetary policy should affect gold price.