Gold price clings to gains after positive US economic data

Gold price advances in the North American session benefiting from the retreating US Treasury yields which weakened the US dollar, following the release of solid US data, specifically factory activity. Traders observed a risk-on in the equities market, spurred by speculations that China is adjusting to exit its zero-tolerance Covid-19 stance, was cheered by investors.

Earlier, the XAU/USD slide from $1647, up by 0.89%, to trade at the time of writing at $1643.59. The Gold Index trimmed earlier losses on positive US data and heightened US Treasury yields

In the United States, economic data revealed by the Institute for Supply Management, alongside S&P Global, showed the economy’s resilience. Firstly; the ISM Manufacturing Index came better than estimated at 50.2 vs. 50 forecasts, while a subcomponent that measures prices fell to more than a two-year low.

At the same time, the US Department of Labor reported that job openings in September surprisingly rose, as the JOLTS report showed an increase of close to 500K, to 10.717M from August’s 10.28M, and exceeding estimates of 10M.