(Kitco News) - The gold market continues to face solid selling pressure as prices have been unable to break through initial resistance at $4,200, and the precious metal is unlikely to attract renewed bullish momentum as activity in the U.S. services sector remains resilient.
The Institute for Supply Management (ISM) announced on Monday that its Services Purchasing Managers Index fell to 54.0 in June after posting a reading of 54.5 in May. The headline figure was broadly in line with consensus forecasts, as economists had expected a reading of around 54.2.
Although the headline data continues to point to positive economic growth, the report also highlighted growing concerns for the second half of the year.
“Fourteen industries reported growth in June, three less than in May, and the number reporting contraction were four, an increase of three from May,” said Steve Miller, Chair of the ISM Services Business Survey Committee.
“Respondents in June commented less frequently about pricing impacts on petroleum products, while tariff impacts continued to be a theme for increased pricing pressure. The Inventories Index dropped to its second-lowest level since October 2025, indicating that the buy-ahead phenomenon from earlier in the year may be over,” he added.
The gold market is not seeing much reaction to the latest economic data. Spot gold last traded at $4,141 an ounce, down 0.74% on the day. Analysts note that the gold market continues to struggle as investors and traders expect the Federal Reserve to raise interest rates before the end of the year. However, expectations have been pared back slightly following last week's disappointing nonfarm payrolls report, which showed that only 57,000 jobs were created last month.
