Gold futures rebounded from two-month lows on Thursday to finish higher, after data showing a fall in U.S. manufacturing activity pressured the dollar and potentially gave the Federal Reserve a little less reason to boost interest rates at a meeting this month.
Traders will now look ahead to Friday’s monthly U.S. jobs report for further clues on the central bank’s plans for interest rates.
December gold GCZ6, -0.07% rose $5.70, or 0.4%, to settle at $1,317.10 an ounce. It settled Wednesday at $1,311.40 an ounce, the lowest settlement for a most-active contract since June 23, according to FactSet data.
“While the drop in ISM [manufacturing] might’ve normally acted as a headwind, the bottom fell out in the U.S. dollar…adding a bid to the price of gold,” said Adam Koos, president of Libertas Wealth Management Group.
Indeed, gold fell as the dollar moved lower against its chief rivals. The ICE U.S. Dollar Index DXY, -0.02% a measure of the greenback against a basket of six rival currencies, was down 0.3% as gold futures settled.
The Institute for Supply Management said Thursday its manufacturing index in August fell to 49.4% from 52.6% last month, below the consensus expectation for a 52% reading. A reading below 50% indicates contraction.
Fed Chairwoman Janet Yellen had reiterated at the Jackson Hole, Wyo. economic summit last week that any decision on rates would be depended on the “degree to which incoming data continues to confirm the Fed policy committee’s outlook.”
The market will get further clues on that front from data set for release Friday. The Labor Department is expected to say the world’s largest economy added 185,000 jobs in August; its report includes government hiring.
Nonfarm payroll numbers Friday could surprise to the upside,” said Nico Pantelis, head of research at Secular Investor. “This will leave little wiggle room for the Fed, and we could get another rate hike in September.”
Click here for Free Signals OR Give A Missed Call : +60350219047 Follow Us On Twitter : www.twitter.com/epicresearchmy Like Us On Facebook : www.facebook.com/EpicResearchMalaysia Need Any Assistance Feel Free To Mail Us at : info@epicresearch.my
Traders will now look ahead to Friday’s monthly U.S. jobs report for further clues on the central bank’s plans for interest rates.
December gold GCZ6, -0.07% rose $5.70, or 0.4%, to settle at $1,317.10 an ounce. It settled Wednesday at $1,311.40 an ounce, the lowest settlement for a most-active contract since June 23, according to FactSet data.
“While the drop in ISM [manufacturing] might’ve normally acted as a headwind, the bottom fell out in the U.S. dollar…adding a bid to the price of gold,” said Adam Koos, president of Libertas Wealth Management Group.
Indeed, gold fell as the dollar moved lower against its chief rivals. The ICE U.S. Dollar Index DXY, -0.02% a measure of the greenback against a basket of six rival currencies, was down 0.3% as gold futures settled.
The Institute for Supply Management said Thursday its manufacturing index in August fell to 49.4% from 52.6% last month, below the consensus expectation for a 52% reading. A reading below 50% indicates contraction.
Fed Chairwoman Janet Yellen had reiterated at the Jackson Hole, Wyo. economic summit last week that any decision on rates would be depended on the “degree to which incoming data continues to confirm the Fed policy committee’s outlook.”
The market will get further clues on that front from data set for release Friday. The Labor Department is expected to say the world’s largest economy added 185,000 jobs in August; its report includes government hiring.
Nonfarm payroll numbers Friday could surprise to the upside,” said Nico Pantelis, head of research at Secular Investor. “This will leave little wiggle room for the Fed, and we could get another rate hike in September.”
Click here for Free Signals OR Give A Missed Call : +60350219047 Follow Us On Twitter : www.twitter.com/epicresearchmy Like Us On Facebook : www.facebook.com/EpicResearchMalaysia Need Any Assistance Feel Free To Mail Us at : info@epicresearch.my
No comments:
Post a Comment