- Gold price holds positive ground near $2,085.55 in Monday’s early Asian session.
- The US ISM Manufacturing PMI came in worse than expected, dropping to 47.8 in February from 49.1 in January.
- Fed’s Bostic said the central bank would cut rates in the summertime if the economy evolves as he expects.
Gold price (XAU/USD) rose to a nine-week high below the $2,100 mark during the early Asian trading hours on Monday. The downbeat US economic data on Friday triggered speculation about the interest rate cuts later this year. Additionally, the lower US Treasury yields added impetus to the rise in investor demand for the yellow metal. At press time, the gold price is trading at $2,085.55, unchanged for the day.
Data released from the Institute for Supply Management (ISM) on Friday showed that the US Manufacturing PMI dropped to 47.8 in February from 49.1 in the previous reading. The figure registered the 16th consecutive month that it remained below 50, which indicates a contraction in manufacturing.
The Federal Reserve (Fed) held the policy rate steady at the 5.25–5.50% range at its January meeting. Investors anticipated that the Fed to lower the rate by the end of 2024. Atlanta Fed President Raphael Bostic said he will monitor the longer-term trends and repeated his view that he sees the US central bank cutting rates in the summertime if the economy evolves as he expects. This, in turn, might improve the appeal of yellow metal and lift the price of gold.
Chinese Manufacturing sent mixed signals last month about the health of the economy. Investors will take more cues from the Chinese Caixin Services PMI for February on Tuesday. Additionally, the development surrounding the stimulus measure from the Chinese authorities could provide some support for the gold price.
Gold traders will keep an eye on the Chinese February Caixin Services PMI and the US ISM Services PMI on Tuesday. The Fed's Chair Jerome Powell testifies on Wednesday might offer some hints about a broad overview of the economy and monetary policy. On Friday, the US Nonfarm Payrolls (NFP) will be in the spotlight.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD retreats below 1.0850 ahead of Fedspeak
EUR/USD stays under modest bearish pressure and trades in negative territory slightly below 1.0850 after closing modestly lower on Thursday. In the absence of macroeconomic data releases, investors will continue to pay close attention to comments from Federal Reserve officials.
GBP/USD stays under modest bearish pressure near 1.2650
GBP/USD edges lower toward 1.2650 after posting marginal losses on Thursday. The US Dollar holds its ground following the selloff seen after April inflation data and makes it difficult for the pair to gain traction. Fed policymakers are scheduled to speak later in the day.
Gold holds steady above $2,380, Fed speakers in focus
Gold trades with a positive bias on Friday and holds above $2,380. The benchmark 10-year US Treasury bond yield stays flat near 4.4% following Thursday's rebound, allowing XAU/USD to keep its footing ahead of speeches from Fed officials.
XRP steadies at $0.51 as Ripple plans to expand XRP Ledger, custody services in Africa
Ripple hovers close to $0.51 on Friday, above the psychologically important $0.50 level, as traders await the court ruling of the lawsuit against the US SEC and amid new commitments from the firm to expand its services in Africa.
Disputes and De-risking: US-China trade dispute changes trade flows
The bilateral trade dispute between the US and China is entering a new round and is leading to renewed discussions about the deglobalisation of global trade in goods.