- Gold price hovers around the $2,000 psychological mark on the USD weakness.
- The private sector in the US continued to grow at a slower pace in early November.
- US Gross Domestic Product (GDP) and Personal Consumption Expenditure (PCE) inflation figures will be in the spotlight this week.
Gold price (XAU/USD) holds above $2,000 during the early Asian trading hours on Monday. Yellow metal's rally is fueled by expectations that the US Federal Reserve (Fed) would not raise the interest rate further. At press time, the gold price is trading near $2,001, losing 0.04% on the day.
Meanwhile, the US Dollar Index (DXY), an index of the value of the USD measured against a basket of six world currencies, declined to the lowest level since September at 103.40. That being said, a weaker USD boosts USD-denominated gold.
The private sector in the US continued to grow at a slower pace in early November. The S&P Global Composite PMI remained unchanged at 50.7. In the same period, the Manufacturing PMI fell to 49.4 from 50.0, worse than the expectation of 49.8. The Services PMI improved modestly to 50.8 from the previous reading of 50.6, above the consensus of 50.4.
The market believes that the Fed will deliver a less hawkish stance and place a bet that it will cut interest rates in the middle of next year, which is weakening the US Dollar.
Later this week, gold traders will keep an eye on the US Gross Domestic Product (GDP) on Wednesday and Personal Consumption Expenditure (PCE) inflation figures on Thursday. The Annualized US quarterly GDP is expected to expand from 4.9% to 5.0% while US PCE for October is estimated to drop from 0.4% to 0.1%.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD holds on to intraday gains after upbeat US data
EUR/USD remains in positive ground on Friday, as profit-taking hit the US Dollar ahead of the weekend. Still, Powell's hawkish shift and upbeat United States data keeps the Greenback on the bullish path.
GBP/USD pressured near weekly lows
GBP/USD failed to retain UK data-inspired gains and trades near its weekly low of 1.2629 heading into the weekend. The US Dollar resumes its advance after correcting extreme overbought conditions against major rivals.
Gold stabilizes after bouncing off 100-day moving average
Gold trades little changed on Friday, holding steady in the $2,560s after making a slight recovery from the two-month lows reached on the previous day. A stronger US Dollar continues to put pressure on Gold since it is mainly priced and traded in the US currency.
Bitcoin to 100k or pullback to 78k?
Bitcoin and Ethereum showed a modest recovery on Friday following Thursday's downturn, yet momentum indicators suggest continuing the decline as signs of bull exhaustion emerge. Ripple is approaching a key resistance level, with a potential rejection likely leading to a decline ahead.
Week ahead: Preliminary November PMIs to catch the market’s attention
With the dust from the US elections slowly settling down, the week is about to reach its end and we have a look at what next week’s calendar has in store for the markets. On the monetary front, a number of policymakers from various central banks are scheduled to speak.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.