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    Gold, Silver Tumble on Report US Economy Grew at Fastest Pace in 26 Months in June

    Gold and silver tumbled Friday on the heels of a report showing that U.S. business activity expanded at its fastest pace in 26 months in June, signaling a strong finish to the second quarter.

    The S&P Global flash PMI composite output index climbed to 54.6 in June, a notch higher than May’s index of 54.5 and its highest since April 2022. 

    The pace of expansion led to rising optimism among business leaders and suggested that inflation could finally be leveling off. Output has increased for 17 straight months, according to the data. 

    Meanwhile, the S&P flash services business activity index rose to 55.1 in June, up from 54.8 in May – also recording a 26-month high.

    Gold and silver slipped in late-morning trading after the survey was released. Gold was down $34.40 at $2,326 per ounce and silver dipped $1.13 at $29.64 per ounce. A day earlier, gold hit a two-week high as traders pinned hopes on an interest rate cut by the Fed this year. 

    “The early PMI data signals the fastest economic expansion for over two years in June, hinting at an encouragingly robust end to the second quarter while, at the same time, inflation pressures have cooled,” Chris Williamson, a chief business economist at S&P Global Market Intelligence, said in a statement accompanying the report. “Although led by the service sector, reflecting strong domestic spending, the expansion is being supported by an ongoing recovery in manufacturing, which so far this year is enjoying its best growth spell for two years.”

    The survey also reported that optimism about output in the year ahead hit a three-month high in June. The upbeat mood carried over to the service sector, the survey noted, as service providers expressed improved sentiment due to lower cost-of-living pressures and hopes of lower interest rates.

    Disclaimer: All Market Updates are provided as a third party analysis and do not necessarily reflect the explicit views of JM Bullion Inc. and should not be construed as financial advice.

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