The precious metals are all trading slightly on the downside today.
Yesterday’s ISM Manufacturing PMI for November was better than October’s
results. The ISM Manufacturing PMI for November was 57.3 compared to
October’s figure of 56.4.
Gold broke new trend support levels after this positive economic data
was released. The overall sentiment for gold remains to be bearish as
investors expect a further decline in the yellow metal. Any positive
economic data released from now until Friday signals
that tapering is bound to occur putting pressure on gold prices.
Economists believe the strong ISM number is due to better housing and
construction data along with stronger exports data. Physical demand for
AU has been very light due to expectations of a further
price drop. Let’s see what tomorrow’s ADP Nonfarm Employment Change is
as this is a good predictor of what Friday’s Nonfarm Payrolls will look
like. Have a great day!
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