Today's world gold price increased when the US manufacturing PMI index (an index measuring economic activity) dropped from 50 points to 49.4 points.
This data makes investors believe that the US economy is weakening. Accordingly, they expect the US Federal Reserve (FED) to soon reduce interest rates in 2024 to promote economic growth.
Immediately, the currency market had a certain reaction. The USD Index dropped to 103.5 points, causing the USD to decrease in price compared to 6 other strong currencies, including: Euro, JPY, GBP, CAD, SEK and CHF.
Therefore, the world gold price last night had the conditions to rebound and surpass the resistance level of 2,000 USD/ounce. However, because the interest rate on 2-year US bonds increased to 4.95%, 5-year and 10-year bonds increased to 4.5% and 4.48% respectively, it attracted cash flow in the market, preventing hindering the increase in gold prices.
This data makes investors believe that the US economy is weakening. Accordingly, they expect the US Federal Reserve (FED) to soon reduce interest rates in 2024 to promote economic growth.
Immediately, the currency market had a certain reaction. The USD Index dropped to 103.5 points, causing the USD to decrease in price compared to 6 other strong currencies, including: Euro, JPY, GBP, CAD, SEK and CHF.
Therefore, the world gold price last night had the conditions to rebound and surpass the resistance level of 2,000 USD/ounce. However, because the interest rate on 2-year US bonds increased to 4.95%, 5-year and 10-year bonds increased to 4.5% and 4.48% respectively, it attracted cash flow in the market, preventing hindering the increase in gold prices.
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