There is good news for gold in the latest edition of the U.S. manufacturing Purchasing Managers Index from IHS Markit which was released earlier this week. The report shows that inflation continues to grow as a threat, meaning gold is primed to benefit.
The report paints a mixed picture, with activity in manufacturing ticking along in line with expectations at an eight-week high, but service sector activity is slowing and supply chain constraints have resulted in a slower rate of business expansion.
HIS Markit’s chief business economist, Chris William said that while there are positives, “…the slowdown underscores how the economy is struggling to cope with ongoing supply constraints.” The report also recognised that businesses are passing on their soaring costs to consumers, something which could have further long term implications for growth.
In this environment, gold thrives as a safe haven asset. Buy now.