XAU/USD Surges Above $2,000 as Weaker Dollar Boosts Gold
Gold (XAU/USD) remains above $2,000 in the early Asian trading hours on Monday. The yellow metal's rebound is driven by expectations that the U.S. Federal Reserve (Fed) won't raise interest rates further. At the time of writing, the gold price is trading near $2,001, down 0.04% on the day.
Meanwhile, the U.S. Dollar Index (DXY), measuring the USD against a basket of six world currencies, has dropped to its lowest level since September at 103.40. A weaker USD will, in turn, boost gold priced in USD.
U.S. private sector growth continued at a slower pace in early November. The S&P Global Composite PMI remained unchanged at 50.7. Simultaneously, Manufacturing PMI decreased from 50.0 to 49.4, worse than the expected 49.8. The Services PMI modestly improved to 50.8 compared to the previous 50.6, exceeding the consensus of 50.4.
Market sentiment suggests that the Fed will adopt a less hawkish stance, with bets on potential rate cuts in mid-next year, weakening the U.S. dollar.
This weekend, gold traders will monitor U.S. Gross Domestic Product (GDP) figures on Wednesday and Personal Consumption Expenditures (PCE) inflation data on Thursday. U.S. GDP for the third quarter is expected to increase from 4.9% to 5.0%, while October's PCE is estimated to drop from 0.4% to 0.1%.
Meanwhile, the U.S. Dollar Index (DXY), measuring the USD against a basket of six world currencies, has dropped to its lowest level since September at 103.40. A weaker USD will, in turn, boost gold priced in USD.
U.S. private sector growth continued at a slower pace in early November. The S&P Global Composite PMI remained unchanged at 50.7. Simultaneously, Manufacturing PMI decreased from 50.0 to 49.4, worse than the expected 49.8. The Services PMI modestly improved to 50.8 compared to the previous 50.6, exceeding the consensus of 50.4.
Market sentiment suggests that the Fed will adopt a less hawkish stance, with bets on potential rate cuts in mid-next year, weakening the U.S. dollar.
This weekend, gold traders will monitor U.S. Gross Domestic Product (GDP) figures on Wednesday and Personal Consumption Expenditures (PCE) inflation data on Thursday. U.S. GDP for the third quarter is expected to increase from 4.9% to 5.0%, while October's PCE is estimated to drop from 0.4% to 0.1%.
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