Gold’s movement is influenced by the recent ISM Manufacturing PMI data from the United States, released at 22:00. This report, compiled by the Institute for Supply Management (ISM), reflects the manufacturing activity in the U.S.
The ISM Manufacturing PMI was reported at 49.3, surpassing the trading central forecast of 48.5 and improving from the previous level of 48.4, indicating a robust U.S. economy.
A PMI reading that exceeds expectations signals growth in the manufacturing sector, which is often interpreted as a sign of a strong U.S. economy. This could lead investors to favor the U.S. dollar as they anticipate potential hawkish monetary policies from the Federal Reserve.
Following the release of this positive data, gold prices dropped to $2,643. The upbeat figures also exerted pressure on EURUSD and GBPUSD exchanges.
