Gold is trading higher today, along with other precious metals. Precious metals extend upward impulse launched on Friday in response to release of weaker-than-expected manufacturing ISM index for February. Disappointing data release, that showed US manufacturing sector index plunging deeper into contraction territory, triggered a 'dovish' reaction in the markets - a drop on USD market as well as gains on precious metals and equity markets.
The move in gold today is somewhat puzzling, however, as it comes in spite of an uptick in US yields. Fed Chair Powell will appear in US Congress later this week to deliver his semiannual testimonies. It looks like markets are positioning for a dovish message from Fed chief. However, data released since last FOMC meeting suggests that Powell is more likely than not to repeat that there is no rush to cut rates and more confidence in inflation is needed. Having said that, a disappointment and a 'hawkish' reaction to Powell's speeches, even if he does not say anything new, cannot be ruled out.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appTaking a look at GOLD at D1 interval, we can see that the precious metal recorded the highest close in history on Friday and is testing the $2,100 per ounce mark at press time. GOLD has traded above this hurdle only once, when it spiked at the beginning of December 2023, but has never closed above this area yet.
Source: xStation5
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
