- XAU/USD accelerated higher after the release of the CLU and the ISM PMI.
- The US dollar continues to correct lower on Thursday.
Gold rises for the third day in a row, while US Treasury yields continue to fall. The XAU/USD pair recently rallied as high as $1,977, hitting one-week highs following the release of the US ISM Manufacturing PMI.
Gold turns positive on Thursday after US data.
During the European session, the value of the ounce bottomed at $1,952, the lowest level in two days. It then started to recover and gained momentum, reaching levels above $1,970 following the release of US economic reports.
The ADP Employment report showed private payrolls rising by 278,000, beating expectations of 174,000. The dollar rose briefly after the ADP release, but fell again after the Bureau of Labor Statistics announced a revision to first quarter unit labor costs (UCL) from 6.2% to 4.2%.
The dollar’s decline accelerated after the May ISM Manufacturing PMI showed the main index decline from 47.1 to 46.9, disappointing market expectations of 47. The Prices Paid Index also fell sharply, from 53.2 to 44.2, versus expectations of 52, while the Employment Index rose unexpectedly from 50.2 to 51.4.
As a result, the dollar fell to fresh daily lows across the board, in line with lower Treasury yields. US stocks opened mixed on Wall Street.
Gold continues to move with a short-term bullish bias, with the next resistance zone located around $1,980. A consolidation above this level would set the stage for an extension towards $1,995. On the other hand, a firm break below $1,955 would likely remove the bullish bias, adding pressure for a test of $1,946.
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.
