- US service sector data beats expectations, with no significant surprises.
- Treasury yields bounce off daily lows.
- The XAU/USD pair continues to pull back from two-week highs and tests $1,840.
Gold prices they weakened after the US data, however remained positive for the day and the week. XAU/USD fell to the $1,840/oz area, pulling back from a previous two-week high near $1,850.
The US ISM services PMI returns figures that beat expectations
The ISM services PMI came in at 55.1 in February, above the 54.5 expected and slightly below the 55.2 in January. The Prices Paid Index fell from 67.8 to 65.5, above the 64.5 of the market consensus. Heading into NFP week, the Employment Index jumped to 54, against expectations for a drop to 49.8.
Earlier, the final reading of the US S&P Global Services PMI showed a positive revision from the 50.5 preliminary estimate to 50.6.
The dollar rose on the report, appreciated against the euro and the New Zealand dollar and pared losses against the pound and the yen. US yields rebounded from their daily lows. The 10-year yield rose from 3.97% to 4.02%.
The XAU/USD pair fell as low as $1,840/oz, although it remained in positive territory during the day. Gold continues to pull back from the two-week high reached on Friday at $1,849.
On a day-to-day basis, Gold continues to rise but far from highs. Intraday support is observed around $1,837. A break down would expose the $1,830 area. To the upside, the key barrier remains the $1,845/$1,850 range.
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.
