Forex Marketz Daily Forex News – Fully Markets Update
Gold futures contracts eased lower during the Asian trade session as the dollar moved higher.
Traders are digesting a better than expected manufacturing survey from the Institute for Supply Management (ISM) that showed that the manufacturing sector for the world’s largest economy moved out of contraction territory for the first time in five months.
However, traders remain concerned about the economic impact that the Wuhan strain of the coronavirus will have on the global economy. This provided some support for the precious metal.
As of 1:55 am GMT, the widely traded spot gold futures contract was trading lower. This contract was down 0.1 percent to trade at $1,575.27 per ounce.
U.S. gold futures, for front month delivery, also lower. This contract was down 0.2 percent to trade at $1,579.50 per ounce.
The dollar index, which measures the greenback against six other Forex currencies, remained firm after gaining 0.4 percent overnight.
Gold Traders Digest U.S. ISM Manufacturing Data and Coronavirus News
China will be allowing health experts from the United States as part of the efforts by the World Health Organization (WHO) to help stop the spread of the coronavirus. This fast spreading viral respiratory infection has infected thousands worldwide and killed hundreds.
The death toll in China is now at 425 according to the country’s National Health Commission.
Looking at U.S. economic data, the ISM manufacturing purchasing managers’ index (PMI) rebounded for the month of January and above the contraction level at fifty (50). This is giving traders hope that the prolonged slump in U.S. manufacturing is finally turning around.
As inflation is stable in the world’s largest economy and employment is solid, the Federal Reserve is likely to stick with their neutral wait and see approach with interest rates and monetary policy. This is according to commentary from Atlanta Federal Reserve Bank President Raphael Bostic on Monday.
