Gold price eventually stabilizes on weak US data

The price of the precious metal has eventually stabilized with the US session’s end. Gold was earlier up 0.5% near $1,826.67 after travelling from a low of $1,804 and $1,831 on the day. It is trading at 1826.10 at the time of writing after weak US economic data was widespread and weighed on the US dollar which was not able to resurge on the back of prior inflationary readings.

Among the US data on Tuesday, gold price rallied on the back of a survey of Consumer Confidence showed a decline to a three-month low of 102.9 in February. The Chicago Business Barometer, also known as the Chicago PMI, dropped to 43.6 in February from 44.3 in the prior month, according to a report from ISM-Chicago and MNI. The S&P CoreLogic Case-Shiller 20-city Home Price Index also dropped 0.5% in December.


Gold price could now be affected by the ISM manufacturing PMI which should continue reflecting the fragility of the sector in February (market f/c: 45.5); the final estimate to the S&P Global manufacturing PMI will likely confirm this too.