Gold Declines Amid Positive US Economic Data
Updated
At the close of Friday's trading session, gold prices unexpectedly dropped nearly $19 per ounce compared to the previous session.
Last night, the US economy revealed a significant increase in the December 2024 manufacturing new orders index, as reported by the Institute for Supply Management (ISM), rising sharply to 52.5 points, higher than the previous month's 50.4 points.
Additionally, ISM announced that the US manufacturing PMI for December rose to 49.3 points from 48.4 points the previous month, surpassing forecasts.
From a technical analysis perspective, the increase in new orders and PMI indicates a positive market sentiment and expanding business activities. This led investors to believe that the US economy is recovering well, prompting them to take profits on gold after a strong rally in the previous session. Gold prices are now undergoing a correction to consolidate and gather momentum for a potential return to the upward trend.
What’s your view on gold prices? Share your thoughts in the comments below!
Last night, the US economy revealed a significant increase in the December 2024 manufacturing new orders index, as reported by the Institute for Supply Management (ISM), rising sharply to 52.5 points, higher than the previous month's 50.4 points.
Additionally, ISM announced that the US manufacturing PMI for December rose to 49.3 points from 48.4 points the previous month, surpassing forecasts.
From a technical analysis perspective, the increase in new orders and PMI indicates a positive market sentiment and expanding business activities. This led investors to believe that the US economy is recovering well, prompting them to take profits on gold after a strong rally in the previous session. Gold prices are now undergoing a correction to consolidate and gather momentum for a potential return to the upward trend.
What’s your view on gold prices? Share your thoughts in the comments below!
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