Article by: ETO Markets
The US ISM Manufacturing PMI, released on Monday, came in at 48.5, below the expected 49.2, which boosted market expectations for two rate cuts by the Federal Reserve in 2024. The US manufacturing sector contracted for the third consecutive month in June, leading to a decline in US Treasury yields, which in turn limited the dollar's rise and supported gold prices. However, economic challenges in China have somewhat capped the gains in precious metals. Traders generally remain neutral ahead of Federal Reserve Chair Jerome Powell's speech on Tuesday evening and the release of the FOMC minutes on Wednesday, while closely monitoring the major US economic data, "Non-Farm Payrolls," to be released later this week.
From a technical perspective, XAU/USD continues to oscillate between the $… mark and the 50-day simple moving average. If gold buyers prevail and the price breaks the key resistance level of $…, it will pave the way for the next target range of $…-$…. Conversely, a break below $…will be seen as a new trigger for bearish traders, potentially dragging the price down to the vicinity of the 100-day simple moving average at around $….
