Gold Rates Stays Flat Globally At US$ 1,655, As US PMI Data Drops To 49.9

Gold and silver prices in the global markets depend on certain economic factors, such as the US Dollar index, economic growth, manufacturing and demand movement, inflation, etc. Today, the S&P Global Flash US Composite PMI said its flash manufacturing PMI data dropped to 49.9, which came even lower from September's reading of 52. Hence, gold prices mostly stayed flat today. In the Comex, December gold futures quoted at US$ 1,653.30/oz,falling by 0.21%.

Additionally, activity in the service sector has been reported weaker than anticipated, sunk even deeper into the contraction territory at 46.6. The data went down from the September reading of 49.3. Chris Williamson, the chief business economist at S&P Global Market Intelligence, mentioned in the report, "The US economic downturn gathered significant momentum in October, while confidence in the outlook also deteriorated sharply. The decline was led by a downward lurch in services activity, fuelled by the rising cost of living and tightening financial conditions." He added that the recent data also indicates a possible recession in the country. So, the gold and silver prices are expected to react accordingly.

In line with the global trend, in India, gold ad silver prices are down this week, during the festive season of Diwali. Today, on October 24, in India the 22-carat gold rate gained to Rs. 47,010, and the 24-carat gold rate gained to Rs. 51,290/10 grams. The silver rate also gained to Rs. 5770/100 grams.

In the Mumbai Commodity Exchange (MCX) gold in December future is quoted at Rs. 50517/10 grams, down by 0.22%, from the last trading day. Meanwhile, the US 2-year Treasury bond yield gained to around 4.507%, and the US 10-year Treasury yield increased to around 4.236%. The US Dollar index is quoted at 112.05, at the time of writing. The gain in the US Bonds and US Dollar also pulled the gold prices down marginally in the international markets.