Yesterday the U.S. Manufacturing ISM report was released; according to the recent report, the U.S. Manufacturing PMI growth rate increased to 54.8% during April 2012. The U.S. Manufacturing PMI is an index that estimates the economic progress of the U.S. manufacturing sector; the index rose for the 35th consecutive month; nevertheless, the growth rate rose from 54.8% in March to 54.8% in April i.e. a 1.4 percent point rise. This means that the U.S. manufacturing sector is growing at a faster pace in April compared to March.
Among the factors that were examined in this survey: one of the sharpest gains was in exports: from 54% to 59% – an increase of 5 percent point; new orders also grew by 3.7 percent points; on the other hand, among the sectors that contracted were backlog of orders at 49.5% and inventories at 48.5%.
According to Roache et. al (2008) it was inferred the PMI Manufacturing ISM report has had a negative link between the daily changes in gold and silver prices and PMI Manufacturing index, without controlling to the U.S dollar effect. Currently, it seems that this news may have helped rally gold and silver prices during the day. Furthermore, the PMI news suppose to have a positive lagged correlation with natural gas prices, i.e. all things being equal including the U.S dollar, as the PMI Manufacturing ISM index tends to rise, natural gas prices also increase.
This news may have been among the factors to pull up yesterday energy commodities prices including natural gas prices and crude oil (WTI), U.S stock markets and the decline of precious metals prices.
Current gold price, (June 2012 delivery) is traded at $ 1,653 per t oz. a $8.5 decrease or 0.52%, as of 10:43*.
Current Nymex crude oil price, (June 2012 delivery) is traded down by 0.41%, at $105.72 per barrel as of 10:43*.
Euros to USD is currently traded at 1.3147 a 0.66% decrease as of 10:53*.
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