The post Gold threatens to breach trendline after release of US PMI data appeared on BitcoinEthereumNews.com.

Gold is threatening to break below a key trendline after the release of US PMI data.  The data showed the Services and Manufacturing sectors in the US expanded more than expected in May.  Gold’s short-term trend is bearish but it is pentrating a major trendline.  Gold (XAU/USD) has fallen to the $2,340s on Thursday after the release of US S&P Global Purchasing Manager Index survey data showed a greater-than-expected expansion in both the Services and Manufacturing sectors in May. The data suggests interest rates will have to remain restrictively high in the US for some time before inflation can be brought sustainably down to the Federal Reserve’s 2.0% target.  The expectation that interest rates will remain at their current level (or higher) for an extended amount of time was bearish for Gold. As a non-yielding asset, higher interest rates increase the opportunity cost of holding Gold, reducing its attractiveness to investors.  The data comes on the back of the release of the Fed’s last meeting Minutes on Wednesday, which revealed policymakers were reluctant to lower interest rates – and even discussed hiking them – due to persistent inflationary pressures.  Gold has fallen sharply from its all-time high on Monday and is currently pentrating a major trendline on Gold price chart which if breached decisively could spell doom for Gold bulls.  Gold price continues bearish reversal after PMI data  Gold weakens on Thursday after the release of strong data from the US, showing its economy is in rude health. US S&P Global Manufacturing PMI came out at 50.9 in May, up from the 50.0 in April and the 50.0 forecast by economists. Services PMI, meanwhile, rose to 54.8 from 51.3 in the previous month and 51.3 forecast. Composite PMI came out at 54.4 in May, up from 51.3 in April – and beating the decline to…

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Filed under: News - @ May 24, 2024 12:10 am