US PMI Data Fails to Topple Gold Value, Rests Above $2,020


Gold recorded moderate losses last night at the time of the announcement of the US PMI economic data which showed a strengthening in the employment figures. This shows that business activity continues to grow despite the decline in previous reports.

The minutes of the FOMC's monetary policy meeting hinted to the market that the Fed is in no rush to cut interest rates anytime soon.

The price of gold is now trading at $2,027.01 which is up by 0.13% at the opening of trading this morning.

XAU/USD investors are now trying to take advantage of the busy economic docket in the US. The Bureau of Labor Statistics (BLS) revealed that jobless claims for this week decreased compared to last week.

At the same time, S&P Global revealed a somewhat mixed February Flash PMI report. This will strengthen the Fed's expectation to keep rates higher for longer.

The latest Federal Open Market Committee (FOMC) minutes emphasize that the US central bank is highly committed to tackling inflation despite the downside economic risks. Policymakers emphasize that they will decide to ease policy through a data-driven approach.

Looking technically, gold is actually showing a bearish direction if displayed at the 50-day SMA. The market places a difficult upper level for XAU/USD at the level of $2,050.00 and then $2,065 if there is an increase in the price of the commodity.

If it is otherwise, the lower support level will be set at $1,973.13 followed by $1,965.86.