- Gold gains momentum after ISM US Manufacturing.
- XAU/USD extends its rebound from monthly lows and tests $1,930/oz.
- The dollar loses ground and US yields retreat from their weekly highs.
Following the weaker-than-expected US economic data release, the price of gold jumped to $1,931, hitting the highest level in a week. The weak data sent the dollar down and boosted US Treasury yields.
US ISM Manufacturing disappoints expectations
The US ISM manufacturing PMI fell from 46.9 to 46.0, falling short of expectations for a modest recovery to 47.2. The prices paid index also fell, from 44.2 to 41.8, while employment fell from 51.4 to 41.8.
These figures indicate the persistence of problems in the manufacturing sector and less pressure on prices, which weighed on the US dollar. As a result, the DXY fell to 102.75, testing Friday’s lows, while the US 10-year yield pulled back from 3.86% and bottomed at 3.78%.
Upon reporting, the XAU/USD pair rallied as high as $1,931, but failed to hold above $1,930. It is currently hovering around $1,926, rising for the second straight day of trading.
Gold continues to bounce after Thursday’s slide to $1,982, the lowest level since March. Although the technical outlook for the yellow metal has improved in the short term, the bias on the daily chart remains bearish, with the price holding well below the 20-day SMA of $1,936.
technical levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
