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Gold Spurred, While USD Slumps on Services ISM

DATA REACT
  • ISM services data adding an extra tailwind to equity prices, and helping the e-mini S&P narrow in on the earlier highs at 3876.25. The considerably lower-than-expected ISM print adds to the evidence of a slowing economy with slowing prices, following in lockstep with the Chicago PMI and soft AHE data in today's labour market report.
  • Gold prices have benefited as yields backtrack, putting spot gold through the earlier highs and closer to the mid-week highs at $1865.1. Strength through here works further in favour of gold bulls, with the next upside levels at $1876.0, the 3.0% 10-dma envelope and $1896.5, the 61.8% retracement of the Mar - Sep bear leg.

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