Today, the U.S. Manufacturing ISM report was published; according to the recent report, the U.S. Manufacturing PMI index rose to 51.5% during September 2012. The U.S. Manufacturing PMI is an index that estimates the economic progress of the U.S. manufacturing sector; this means the manufacturing sector expanding for the first time in four months; the index rose from 49.6% in August to 51.5% in September i.e. a 1.9 percent point gain. This means that the U.S. manufacturing sector has expanded in September.
Among the factors that were examined in this survey: another item that shifted from contraction to expansion was new orders: from 47.1% to 52.3% – an increase of 5.2 percent point; prices also rose by 4% to 58. Production, on the other hand, is still contracting even though the index rose by 2.3 percent points to 49.5.
According to Roache et. al (2008) it was assessed that the PMI Manufacturing ISM report tends to be negatively linked with the changes of gold and silver prices without controlling to the U.S dollar effect. Furthermore, the PMI news suppose to have a positive lagged effect on 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. Since the PMI rose for the first time in four months to growth, this news might have a positive effect on commodities.
Current gold price, (November 2012 delivery) is traded at $ 1,779.4 per t oz. a $5.5 increase or 0.31%, as of 17:44*.
Current Nymex crude oil price, (November 2012 delivery) is traded up by 0.31%, at $92.48 per barrel as of 17:44*.
Euros to USD is currently traded at 1.2896 as of 17:44*.
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