Gold prices surged to $2,088.33, marking a substantial rise driven by US economic data and bond yield dynamics. Mixed reports on manufacturing PMI contributed to Gold’s climb, with S&P Global indicating economic expansion but ISM reporting a contraction in the US manufacturing sector. This pushed XAU/USD to a new year-to-date peak.
S&P Global revealed improved manufacturing conditions, while ISM reported a decline in manufacturing activity. This data spurred Gold prices upward as US Treasury bond yields fell, increasing the appeal of Gold. XAU/USD reached $2,087.45 as bond yields dropped, impacting the US Dollar.
Following the data, traders anticipated the possibility of rate cuts, with the CME FedWatch Tool showing increased odds of a cut in June. Various Federal Reserve speakers discussed monetary policy, with opinions ranging from holding rates higher for longer to considering rate cuts in the summer.
Earlier in the week, data releases included Core PCE reports, Initial Jobless Claims, and housing data, among others. Gold’s rally continued, with prices aiming for $2,100.00 and testing key resistance levels. Support levels for XAU/USD were identified, indicating potential price movements in the near future.
