Gold prices jump as U.S. services sector contracts for the first time in nearly a year

NEW YORK (June 4) After a slow start in the early morning hours, gold prices have pushed into positive territory as the U.S. economy continues to slow momentum, with the service sector falling into contraction territory.

The Institute for Supply Management (ISM) announced on Wednesday that its Services Purchasing Managers Index dropped to 49.9% in May, compared to the previous reading of 516%. The headline number was weaker than expected, as consensus estimates were looking for an increase to 52%.

This is the first contraction in the services sector since July 2024.

The gold market has been trading in a relatively quiet range early in the trading day; however, the disappointing economic data has supported investment safe-haven demand. Spot gold last traded at $3,365 an ounce, up 0.36% on the day.

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