Gold experienced a notable decline on Friday, retesting the 2320 level after breaking through the previously established range of 2350 to 2335. Traders are now focusing on the key zones of 2335 and 2318. Today, the market's attention will be on the release of the final manufacturing PMI and ISM manufacturing PMI data, which are expected to influence gold prices and market sentiment.
The forex market is witnessing a shift in sentiment against the US dollar. Recent US economic data, along with revisions to previously announced figures, have been weaker than expected. This softer data brings forward the anticipation of US interest rate cuts, subsequently leading to a depreciation of the USD.
To understand the current landscape of US interest rate and FX markets, a brief historical overview is essential. This week, two interest rate decisions are on the agenda, along with key economic data releases including US jobs data for May, Chinese trade data for May, and Australian economic growth for the first quarter. Additionally, the start-of-the-month surveys of global manufacturing are being closely monitored.
China’s official survey released on Friday revealed an unexpected dip in both manufacturing and service sector activity, adding to the global economic uncertainty. This data will likely influence market movements and investor decisions in the coming days.
As the market digests these economic indicators, traders should stay vigilant and consider the potential impacts on gold prices and the broader financial landscape.