ISM Manufacturing PMI in July Sends Gold Prices Plummeting

Gold prices dropped to session lows as the Institute for Supply Management (ISM) manufacturing index revealed that the U.S. manufacturing sector contracted for the ninth consecutive month. The index came in at 46.4% for July, below market expectations of 46.9%. The employment index also fell further into contraction, while the index for new orders remained in contraction territory. Despite a slight uptick in the PMI, the reading reflects companies continuing to manage outputs down as order softness persists.