Bullion Eases Slightly After Monday’s Rally

Gold prices rose 0.8% on Monday as the OPEC-related rally in oil prices increased recession risks and the US ISM data disappointed. Today it has eased 0.2% to around $1980.40/oz. The USD index is up slightly.

• Gold reached a high of $1990.55 on Monday and is heading towards the bull trigger of $2009.70, the March 20 high. Today the intraday high was $1985.59 followed by a low of $1977.95.
• The manufacturing ISM showed that prices paid had fallen in March with the index down to 49.2 from 51.3, thus easing inflation and rate hike concerns. The services ISM prints on Wednesday and price pressures in this sector are a lot higher with analysts only expecting a slight moderation from February’s elevated 65.6.
• Later the Fed’s Cook, Collins and Mester speak. Bank of England’s Pill is also due to talk. There is little on the data calendar with February US JOLTS job openings the main release. The focus of the week is Friday’s US non-farm payrolls for March.