Manufacturing Index Lower Than Expected; Gold Drops Somewhat

The ISM Manufacturing Index number for February came in at 56.5, well below January's 58.4 and expectations for 58. The U.S. Dollar Index has rallied on the news; it surged up to 81.25 before dropping back a little below the 81.2 level.

Gold dropped, but not by that much: as of 10:39 AM ET, the spot price was $1,113.80 for a drop of $4.10 since the end of last week's trading. Before the release of the news, the price was about $1,113; 10 AM saw a run of more than four dollars an ounce before it was clipped by the rise in the greenback. Although it dropped, the Kitco Gold Index has $8.20 added due to predominant buying pressure. Had it been absent, gold would have dropped $12.30 because of the greenback rally.

The metal's still showing hidden strength...