Gold price drops further as Services PMI remains upbeat
Gold price resumes its downside journey, and tests territory below the crucial support of $1,920.00 as investors underpin the US Dollar as a safe-haven asset amid deepening global uncertainties and US ISM Services PMI outperformed expectations.
The ISM agency reported a sharp increase in service activities to 54.5 vs. expectations of 52.5 and July's reading of 52.7.
The precious metal fails to find attention despite the Federal Reserve being expected to keep interest rates steady at 5.25-5.50% for the remaining year.
As per the CME Fedwatch Tool, there is a 53% chance that interest rates will remain unchanged at 5.25%-5.50% by year-end.
Fed Governor Christopher Waller said on Tuesday the latest batch of economic data has provided more room to the central bank to assess whether interest rates need to increase again. Fed Waller further added that he doesn’t see any trigger forcing further policy tightening.
A higher Unemployment Rate and a slower wage growth rate for August are supportive catalysts that would allow Fed policymakers to deliver an unchanged interest rate decision.
Contrary to Fed Waller, Cleveland Fed Bank President Loretta Mester said there is still a lot of time before the FOMC decision in late September and the central bank will get a lot of data and information by then.
The US Dollar hovers near a fresh five-month high, marginally lower than 105.00. The Greenback is walking on thin ice as investors hope that the Fed is done with hiking interest rates further.
US Factory Orders for July contracted sharply by 2.1% after expanding for four straight months, while investors forecasted 0.1% shrinkage. In June, the economic data expanded significantly by 2.3%.
New Orders for manufactured goods were contracted due to a sharp decline in demand for durable goods as corporations banked on backlogs amid a weak demand outlook.
Investors will also focus on commentary from Dallas Fed President Lorie Logan.
Last week, the US ISM Manufacturing PMI for August remained stabilized but continued to stay below the 50.0 threshold, which signals a contraction in economic activity.
US firms stated that they are focusing more on sustaining margins, operating with the available labor force and inventories due to easing confidence in household spending.
The US Dollar has been performing well as recession fears in the US economy recede due to the stable job market and cooling inflationary pressures. Analysts at Goldman Sachs see a 15% chance that the US economy will slide into a recession. Earlier, the expectations of a recession in the US economy reached 20%.
Meanwhile, discussions about US-China trade relations have also underpinned the US dollar. US Commerce Secretary Gina Raimondo said on Tuesday, “Don’t expect any changes to US tariffs on China imposed by Trump.”
PLAN 1: BUY XAUUSD 1908 - 1912
Stop Loss : 1904
Take Profit 1 : 1920
Take Profit 2 : 1925
Take Profit 3 : 1930
PLAN 2: SELL XAUUSD 1933 - 1936
Stop Loss : 1939
Take Profit 1 : 1920
Take Profit 2 : 1915
Take Profit 3 : 1910
The ISM agency reported a sharp increase in service activities to 54.5 vs. expectations of 52.5 and July's reading of 52.7.
The precious metal fails to find attention despite the Federal Reserve being expected to keep interest rates steady at 5.25-5.50% for the remaining year.
As per the CME Fedwatch Tool, there is a 53% chance that interest rates will remain unchanged at 5.25%-5.50% by year-end.
Fed Governor Christopher Waller said on Tuesday the latest batch of economic data has provided more room to the central bank to assess whether interest rates need to increase again. Fed Waller further added that he doesn’t see any trigger forcing further policy tightening.
A higher Unemployment Rate and a slower wage growth rate for August are supportive catalysts that would allow Fed policymakers to deliver an unchanged interest rate decision.
Contrary to Fed Waller, Cleveland Fed Bank President Loretta Mester said there is still a lot of time before the FOMC decision in late September and the central bank will get a lot of data and information by then.
The US Dollar hovers near a fresh five-month high, marginally lower than 105.00. The Greenback is walking on thin ice as investors hope that the Fed is done with hiking interest rates further.
US Factory Orders for July contracted sharply by 2.1% after expanding for four straight months, while investors forecasted 0.1% shrinkage. In June, the economic data expanded significantly by 2.3%.
New Orders for manufactured goods were contracted due to a sharp decline in demand for durable goods as corporations banked on backlogs amid a weak demand outlook.
Investors will also focus on commentary from Dallas Fed President Lorie Logan.
Last week, the US ISM Manufacturing PMI for August remained stabilized but continued to stay below the 50.0 threshold, which signals a contraction in economic activity.
US firms stated that they are focusing more on sustaining margins, operating with the available labor force and inventories due to easing confidence in household spending.
The US Dollar has been performing well as recession fears in the US economy recede due to the stable job market and cooling inflationary pressures. Analysts at Goldman Sachs see a 15% chance that the US economy will slide into a recession. Earlier, the expectations of a recession in the US economy reached 20%.
Meanwhile, discussions about US-China trade relations have also underpinned the US dollar. US Commerce Secretary Gina Raimondo said on Tuesday, “Don’t expect any changes to US tariffs on China imposed by Trump.”
PLAN 1: BUY XAUUSD 1908 - 1912
Stop Loss : 1904
Take Profit 1 : 1920
Take Profit 2 : 1925
Take Profit 3 : 1930
PLAN 2: SELL XAUUSD 1933 - 1936
Stop Loss : 1939
Take Profit 1 : 1920
Take Profit 2 : 1915
Take Profit 3 : 1910
ความคิดเห็น:
The market will have gradually better perspectives to recover and create BUY orders
ความคิดเห็น:
The trend is still running right
ความคิดเห็น:
The furthest point goes back to 1926, everyone.
ความคิดเห็น:
The highest peak in the area 1929
ความคิดเห็น:
The market is going down. Likely to reach the finish line
ความคิดเห็น:
The market is having a good downward force
ความคิดเห็น:
The market will return to the city as expected sooner.
ความคิดเห็น:
The market is stopping trading at the end of the week. There will be many changes next week
ความคิดเห็น:
Tomorrow is the day the market starts
