Spot gold trades near session low after ISM Manufacturing PMI dips to 52.4

Gold held gains after the February ISM Manufacturing PMI eased modestly to 52.4 (Jan 52.6) but beat consensus (51.8), keeping U.S. manufacturing in expansion and supporting risk/macro cross-currents rather than delivering a clear growth scare. Spot gold was reported up ~1.2% on the day, trading around $5,342/oz after an earlier spike to $5,419/oz. Within the ISM details, the key market-relevant surprise was a sharp re-acceleration in input prices: the Prices Index jumped to 70.5 (from 59.0), the highest since June 2022. New Orders remained expansionary at 55.8 (down from 57.1), Production slowed to 53.5 (from 55.9), Backlogs rose to 56.6 (from 51.6, highest since May 2022), while Employment stayed in contraction at 48.8 (though slightly improved). For precious metals, the combination of “still-expanding” activity with a pronounced prices rebound is consistent with sticky inflation risk and potentially higher-for-longer rate expectations—normally a headwind for non-yielding gold—yet the reported price action suggests gold was bid on inflation-hedge demand and/or broader uncertainty. Near-term catalysts are the market’s interpretation of the Prices Index surge feeding into real yields and the USD, plus upcoming U.S. data that can validate (or fade) the inflation re-acceleration signal. Key risk: the article’s quoted gold price levels (~$5,3xx–$5,4xx/oz) are inconsistent with typical spot market conventions and may reflect a data/formatting error; traders should corroborate with live pricing before acting on the stated levels.