Gold prices rise above $3,350 as US manufacturing PMI drops to 48
Spot gold prices rose above $3,350 an ounce as the US manufacturing PMI for July fell to 48, indicating a clear weakening in the industrial sector.
Gold prices benefit as US manufacturing continues to shrink
World gold prices on August 1 recorded an increase of 2.24%, trading around 3,362.53 USD/ounce, as the market received more negative signals from the US economy.
Specifically, the manufacturing PMI index of the Institute for Supply Management (ISM) fell to 48 points in July, lower than the expectation of 49.5 points and down from 49 points in June.
According to Ms. Susan Spence, Chair of the ISM Business Survey Committee, about 79% of the US manufacturing GDP contracted in July, a sharp increase from 46% the previous month. Of which, 31% of this industry's GDP fell into deep contraction with the PMI index below 45 points. Notably, no major manufacturing industry recorded growth in July, while 4 industries still increased in June.
Weak PMI boosts safe-haven demand for gold
The sharp rise in gold prices is reinforcing its role as a safe haven asset, especially when the US labor market also recorded signs of slowing down. The employment index in the ISM report fell from 45 to 43.4 points, showing that hiring momentum in the manufacturing sector is weakening.
Meanwhile, the New Orders index increased slightly from 46.4 to 47.1 points, while the Production index inched up from 50.3 to 51.4 points, showing that manufacturing activities still maintained a slight expansion.
On the cost side, price pressure is showing signs of cooling down as the Price Index dropped sharply from 69.7 to 64.8 points, reflecting the decline in input materials.
Aaron Hill, senior analyst at FP Markets, said that weak PMIs not only put pressure on the USD but also reinforced the bullish momentum of gold: “The persistent weakness in key economic indicators is making gold more attractive to investors amid uncertainty.”
Gold price today August 2 in domestic market
According to a survey, today's gold price on August 2 at the brands SJC, PNJ, DOJI, Bao Tin Minh Chau, gold bar price increased sharply to 121.5 - 123.5 million VND/tael (buy - sell).
Phu Quy SJC buys at 1 million VND/tael lower than other gold brands, trading at 120.5 million VND/tael for buying and 123.5 million VND/tael for selling.
The domestic gold ring price today has increased sharply compared to yesterday morning, listed at the highest price of 119.5 million VND/tael for sale.
Specifically, SJC listed the price of gold rings at 116.5 - 119 million VND/tael (buy - sell), an increase of 1.9 million VND/tael in both directions compared to yesterday morning.
PNJ traded gold rings at 117 - 119.5 million VND/tael, up 1.9 million VND/tael (buy) and up 1.9 million VND/tael (sell).
Bao Tin Minh Chau gold rings increased by 1 million VND/tael in both directions, currently trading at 117.2 - 120.2 million VND/tael (buy - sell).
Meanwhile, Phu Quy increased the price of gold rings by 1.3 million VND/tael in both directions, trading at 116.2 - 119.2 million VND/tael.
DOJI increased the price of gold rings by 1 million VND/tael in both directions, trading at 117 - 119.5 million VND/tael.
