Gold off session lows after ISM Services PMI rises to 54.5 in May
The U.S. service sector improved above expectations last month, according to the latest data from the Institute for Supply Management (ISM).
The ISM announced on Wednesday morning that its Services Purchasing Managers Index came in at 54.5 in May, up from 53.6 in April. The data was better than expected, as economists were looking for a reading of 53.8.
Readings above 50 in such diffusion indexes signify economic growth and vice versa. The farther an indicator is above or below 50, the greater or smaller the rate of change. May was the 23rd consecutive month that the services index remained in expansion territory.
Spot gold was coming off the session low of $4,426.42 set a few minutes after the equity open. Spot gold last traded at $4,450.98 per ounce for a loss of 0.82% on the daily chart.
“May’s Services PMI is the fifth month in a row with an increase in the 12-month PMI average, up 1.1 percentage points from 51.7 percent in December 2025 to its current 52.8 percent,” said Steve Miller, Chair of the ISM Services Business Survey Committee. “The Prices Index increased to 71.3 percent, its highest reading since August 2022 (72.6 percent). In this month’s report, petroleum-related products were mentioned as a commodity up in price, a dynamic panelists had not yet reported in April. The Supplier Deliveries Index continued to indicate slower performance; while it eased by dropping 1.6 percentage points in May, its reading of 55.2 is still 2.1 points above its 12-month average.”
“The Business Activity Index remained in expansion territory in May, increasing 1.8 percentage points to 57.7 percent from April’s reading of 55.9 percent,” Miller noted. “The New Orders Index registered 57.3 percent, 3.8 percentage points above April’s figure of 53.5 percent and 2.6 percentage points higher than its 12-month average reading of 54.7 percent. The Employment Index contracted for the third month in a row with a reading of 47.9 percent, a 0.1-percentage point decrease from the 48 percent recorded in April; of the four subindexes that make up the composite PMI, it is the only one that remains below its 12-month moving average.”
The ISM said 17 industries reported growth in May, three more than in April, while the number reporting contraction dropped to one, a decrease of two from April.
