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Surges Friday After Weaker Than Expected ISM Data

GOLD

Gold is little changed in the Asia-Pac session, after closing 1.9% higher at $2082.92 on Friday.

  • According to MNI’s technicals team, gold surged beyond a key resistance at $2065.5 (Feb 1 high) and stopped marginally short of $2088.5 (Dec 28 high).
  • The move in bullion was driven by lower Treasury yields and a softer USD index following the release of weaker-than-expected ISM Manufacturing data. Continued Red Sea geopolitical tension added to the bid tone.
  • Balanced commentary from several Fed speakers and the preview of Chairman Powell's monetary policy report to Congress this week did little to forestall the drop in Treasury yields.
  • US data resumes on Tuesday with S&P Global US Services PMI, ISM Services, Factory and Durable Goods Orders.

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