The Institute for Supply Management (ISM) Manufacturing Purchasing Managers Index (PMI) is a monthly survey that measures the overall health of the manufacturing sector in the United States. The index provides valuable insights into the supply and demand dynamics within the sector, influencing various economic indicators. Similarly, gold, as a precious metal, often experiences price fluctuations in response to economic events.
Today’s given signal : https://t.me/calendarsignal/14872
Impact on Gold Price
The relationship between the ISM Manufacturing PMI and gold price is not direct but rather indirect. The PMI serves as a leading indicator of economic health, influencing investor sentiment and market expectations. When PMI readings are released and show weakness or contraction, it typically signals a decline in economic growth, which in turn affects investor confidence and demand for gold.
During periods of economic uncertainty, investors tend to seek safe haven assets like gold. Gold is seen as a store of value and a hedge against inflation, volatility, and economic downturns. Therefore, when the ISM Manufacturing PMI falls below a certain level, it suggests that economic activities within the manufacturing sector are contracting or slowing down. This, in turn, can prompt investors to seek refuge in gold, driving its price higher.
Case Study: 3rd September 2024
To illustrate the connection between the ISM Manufacturing PMI and gold price, let’s consider the example of 3rd September 2024. On this day, the ISM Manufacturing PMI was released, and it showed a decline in the index.
In response to the negative PMI data, investors became concerned about the future growth prospects of the U.S. economy. This prompted a surge in demand for gold, as investors sought safe haven assets to protect their wealth. The price of gold will soar on that day.
Previous released data results :
On last ISM data (1-8-2024) we predict to BUY XAUUSD as for bad ISM Data, GOLD price was fall.
Check the previous blog : https://blog.forextrade1.co/understanding-us-sp-global-ism-data-implications-for-gold-prices-today/
Check last given signal : https://t.me/calendarsignal/14168
Performance : https://t.me/calendarsignal/14201
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