The release of U.S. factory orders data at 10:00 PM WIB tonight revealed a notable increase to 1.4%, in line with Trading Central’s forecasts but significantly better than the previous figure recorded at -1.3%. This surge underscores the recovery of U.S. manufacturing activity and signals that the industrial sector continues to positively impact economic growth. Market reactions were swift, as gold prices experienced volatility around $4,059 per troy ounce due to rising speculation that the U.S. economy remains robust enough to withstand external pressures.
This strengthening in manufacturing performance may limit the Federal Reserve’s ability to cut interest rates in the near term. Given the economic indicators reflecting resilience, Fed officials are likely to maintain a cautious stance and await stronger evidence that inflation is genuinely moving towards the 2% target. Tonight’s data adds pressure on market participants who had previously anticipated a quicker interest rate drop. Should the trend of improving U.S. economic data continue, the Fed’s monetary policy direction is likely to remain hawkish, which could ultimately weigh on gold prices and trigger further strengthening of the U.S. dollar.
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