After surging above $1,700 an ounce on Tuesday, gold prices stabilized as traders pondered whether the US federal reserve can temper his hawkish attitude after the release of weak economic data.
Manufacturing activity in the US slowed in September and grew at the slowest pace in almost two and a half years. That ISM’s Manufacturing PMI fell to 50.9, the lowest reading since May 2020.
Job vacancies also fell in August, the sharpest in almost two and a half years, suggesting the job market was beginning to cool as the economy struggled with higher interest rates. reported Reuters.
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What happened: Bullion was up almost 4% over the past two sessions as higher bond yields and risk aversion pushed traders and investors towards the safe-haven yellow metal.
The rise in the price of gold is reflected in the performance of ETFs SPDR Gold MiniShares Trust GLDM and the abrdn Physical Gold Shares ETF SGOL has gained over 4% in the past five days. Spot Gold last traded at $1,718/oz in the Asia session.
More employment data sets to be released this week could provide clues to the likely tightening trajectory, the report said.
take experts: Ed MoyaSenior Market Analyst OANDAsaid in a note that gold’s bottom is now in as the US shows clear signs the job market is softening, reported Bloomberg. Unless non-farm payrolls see “extraordinarily strong pressure,” gold should remain supported and could test $1,750 an ounce, he said.
Continue reading: Sharp drop in US job vacancies, will the Fed change direction now? Don’t bet on it
