Gold climbs to one-week highs after US data

Gold gains momentum after Monday’s US ISM Manufacturing. The Gold Index extends rebounds from monthly lows, tests $1,930 per ounce.

US Dollar erases some of its earlier gains, US yields pullback from weekly highs. Following the release of weaker-than-expected US economic data, gold price jumped to $1,931, reaching the highest level in a week. The weaker data triggered a decline of the US Dollar and boosted Treasury bonds.

The US ISM Manufacturing PMI dropped from 46.9 to 46.0, falling short of expectations for a modest recovery to 47.2. The Prices Paid Index also fell, declining from 44.2 to 41.8, while Employment dropped from 51.4 to 41.8.


These figures indicate ongoing problems in the manufacturing sector and softer price pressures, which weighed on the US dollar. As a result, the DXY fell to 102.75, testing Friday’s lows, while the 10-year US bond yield pulled back from 3.86% and bottomed at 3.78%.

Following the report, XAU/USD jumped to $1,931 but failed to hold above $1,930. It is currently hovering around $1,926, up for the second consecutive trading day.