Gold prices reached a new record of $2141.59 earlier on Tuesday, driven by expectations of forthcoming Fed policy easing. Reports of slowing business activity in the US services sector contributed to the rally, with XAU\/USD now trading at $2126.85.
A decline in US Treasury yields supports the surge in gold prices. The S&P Global Services PMI experienced a slight decrease to 52.3, while the Composite PMI registered at 53.8, lower than the previous reading of 54.2. The ISM Services PMI reported a decline to 52.6 from 53.4, coming in below the anticipated consensus of 53, which resulted in a negative impact on the US Dollar.
Factory Orders in January fell more than expected, from 0.2% to -3.6% MoM. Interest rate probabilities suggest traders are expecting the first cut in June, with odds increasing to 55% from 49.7% a week ago.
Gold prices remain supported by strong central bank buying in emerging markets. The near-term demand for gold will be influenced by Fed Chair Jerome Powell’s testimony before Congress on Wednesday and an array of United States economic data released later this week.
Powell is expected to reiterate that there is no urgency for rate cuts due to resilient economic growth. The Fed wants to see inflation declining further before considering rate cuts.
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Gold prices reached a new record of $2141.59 earlier on Tuesday, driven by expectations of forthcoming Fed policy easing. Reports of slowing business activity in the US services sector contributed to the rally, with XAU\/USD now trading at $2126.85.A decline in US Treasury yields supports the surge in gold prices. The S&P Global Services PMI …<\/p>\n","protected":false},"author":13,"featured_media":70951,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[38,37,36],"tags":[6885,6874,9034,7163,9848,9537,10731],"class_list":["post-97985","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-commodities-news","category-forex-markets","category-market-updates","tag-fed","tag-gold","tag-ism-services-pmi","tag-jerome-powell","tag-pmis","tag-rate-policy","tag-sp-global-pmis"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/97985","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=97985"}],"version-history":[{"count":2,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/97985\/revisions"}],"predecessor-version":[{"id":97991,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/97985\/revisions\/97991"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/70951"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=97985"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=97985"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=97985"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}