WASHINGTON – Gold prices experienced a significant drop from levels above $2,100 to $2036 as the US Dollar gained strength, with the DXY index, which measures the currency against a basket of other major currencies, climbing to 103.96. This shift indicates a rising preference for the dollar among investors.
The economic landscape is presenting mixed signals. The Institute for Supply Management’s (ISM) Non-Manufacturing Purchasing Managers’ Index (PMI) exceeded market expectations by registering at 52.7, pointing to continued expansion in the service sector. However, the Job Openings and Labor Turnover Survey (JOLTs) reported job vacancies falling to a multi-year low of 8.733 million, suggesting some cooling in the labor market.
Looking ahead, market participants are turning their attention to forthcoming labor data for additional insights into the economic direction. The ADP Employment Change report and Nonfarm Payrolls will be particularly scrutinized for their potential impact on gold prices and broader financial markets.
Moreover, projections from the Atlanta Federal Reserve’s GDPNow model indicate that economic growth in the fourth quarter may be subdued, not exceeding 2%.
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