Up Again As ISM Mfg Signals A Cooling Economy

In Asia-Pacific trade, gold remains stable amidst subdued trading ahead of the US Independence Day holiday. In the previous session, bullion saw a 0.6% increase as traders weighed the resurgence of risk appetite against emerging signs of a slowdown in the US economy.

• The Nasdaq 100, posting its best-ever performance in the first half of the year, has diverted investor attention from safe-haven assets like gold, as the technology sector offers prospects for greater returns.
• However, the latest ISM Manufacturing survey indicated a significant weakening, reaching its lowest level in over three years. The production and new orders sub-indices also supported the cooling economy narrative.
• Yesterday’s economic update came after US data released on Friday showed inflation easing, boosting optimism the Federal Reserve may be nearing the end of its series of rate hikes, which is typically negative for non-yielding bullion.
• Traders will be closely monitoring the upcoming earnings season and key data releases, such as Friday's nonfarm payrolls report, for further insights into the overall health of the economy.