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Gold slips as stronger US data lifts the dollar
Gold is trading near $4,037, down 0.12%, after ISM manufacturing expanded faster than forecast in July.
Gold prices eased on Monday as the US Dollar bounced off earlier session lows, with investors reacting to fresh US economic data and a shift in rate expectations, FXStreet reports. The XAU/USD pair was quoted at $4,037, down 0.12%.
The dollar’s recovery was supported by intervention in FX markets by US and Japanese authorities, which boosted the Japanese yen, the outlet said. At the same time, geopolitics was in focus, with President Donald Trump saying the Iran conflict is “working out very well,” while also noting the US Navy blockade would remain in place until Iran agrees to terms that include no nuclear weapon and keeping the Strait of Hormuz open.
On the data front, the Institute for Supply Management said its Manufacturing PMI rose from 53.3 to 55.6 in July, the fastest pace in four years, beating forecasts for 54.0. FXStreet added that employment in the report rose for the first time since 2023, while prices paid pointed to still elevated input costs.
The report also fed into expectations for the Federal Reserve, with a decline in oil prices leading to a repricing toward a less hawkish stance, according to Prime Terminal data cited by FXStreet. However, uncertainty around US Iran developments remains, as a jump in energy prices could push rates higher, with attention turning to upcoming jobs reports including ADP, JOLTS, jobless claims, and Nonfarm Payrolls.
Latest closeGold $4,098.60 ▼0.0%