Gold's Dominance Scratched, Lowering After Weaker US PMI Figures

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Gold posted a two-day red in Asian trade after hitting a weekly low around $2,462 amid a stronger US dollar.


Economic data showed business activity in the manufacturing sector contracted and US employment figures signaled a bearish sentiment.


At 9.50am, gold was at $2,445.12, down 0.05% since it opened in early Asian trade on Friday.


Market participants are now risk-averse following a report from the Institute of Supply Management (ISM) which underlined that manufacturing activity in July fell to recessionary levels and printed the lowest reading since December 2023.


Meanwhile, US equities plunged between 1.56% to 3.27% and US Treasury bond yields also declined sharply.


The sentiment is driving gold's strength to remain stable and become the focus of safe assets in the longer term.


The US Bureau of Labor Statistics (BLS) revealed that the number of Americans filing unemployment figures rose more than the previous week's report and it exceeded market estimates.


However, the latest round of data maintains the 'dovish' trend even though Fed officials are still skeptical about the disinflation process regarding the latest economic figures.

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