Gold price hits a three-month high and is poised to end the week with gains of over 5.6%, even though business activity in the services sector in the US was solid.
Recent developments in the Middle East and a softer US Dollar underpin the yellow metal, which has surpassed the $4,600 threshold
The XAU/USD trades at $4,622, up over 2.3%. XAU/USD hits three-month high despite strong US services data The US S&P Global Services PMI in August exceeded estimates of 54 to reach 56.8, the highest since December 2024, and crushed the previous month’s 54.6 print. However, not all is good news: the Manufacturing PMI slowed from 53.9 to 53.2, a five-month low.
Chris Williamson, chief business economist at S&P Global Market Intelligence, said in a statement. “US business is booming, with firms reporting the fastest output growth for over four years so far in the third quarter as the expansion picked up further momentum in August.” The data was mostly ignored by investors, who continued to digest the bond buyback plan of the US Treasury. Scott Bessent, the US Treasury Secretary, said “an increased focus on fiscal consolidation,” will be the administration’s next strategy. Bessent added that the government could further expand Treasury buybacks, a day after the department unveiled plans to double buybacks of longer-dated securities.