Gold is holding firm above $3,300 an ounce after fresh data revealed the U.S. service sector bounced back into growth last month, sending mixed signals for investors weighing inflation, interest rates, and economic resilience.
The Institute for Supply Management (ISM) reported that its Services PMI rose to 50.8 in June, up from May’s slight contraction at 49.9. Any reading above 50 signals growth. Economists had expected a milder rebound to 50.5, so the modest upside surprised markets just enough to trim gold’s early gains.
At last check, spot gold was trading at $3,333.82 per ounce, down 0.69% for the day. The yellow metal had surged in recent weeks as investors sought safety from global uncertainties, so a positive economic reading takes a bit of the shine off—but not much.
Inside the report, the details paint an interesting picture: New orders jumped to 51.3, suggesting fresh demand for services, and business activity climbed to 54.2—a solid expansion. However, hiring is slipping. The Employment Index fell sharply to 47.2, indicating that businesses are becoming more cautious about hiring new workers, even as demand is increasing.
Meanwhile, inflation pressures in the services sector eased slightly but remain hot, with the Prices Index at 67.5—down a touch from May’s 68.7.
“This is a welcome return to expansion,” said Steve Miller, who chairs ISM’s Services Business Survey Committee. “But slow growth and economic uncertainty remain big themes for our respondents.”
Traders now turn their eyes to what this means for the Federal Reserve. A stronger service sector could cool talk of aggressive rate cuts—something that typically weighs on gold. Still, with geopolitical risks and tariffs in the mix, gold’s safe-haven status remains strong.
For now, the $3,300 mark is the level to watch.
