Downfall in the gold market today following the release of the US ISM data – 2-9-2025


Today’s strong ISM Manufacturing PMI suggests the U.S. factory sector remains robust. Coupled with firm employment and rising new orders, these data points paint a picture of sustained economic momentum that supports continued Fed dovish hesitation or even hawkish leanings. In turn, gold’s narrative shifts from inflation hedge and safe-haven to non-yielding asset subject to tightening macro fundamentals.



Today’s given signal : https://t.me/calendarsignal/20203



Understanding Today’s “Good” ISM Manufacturing PMI (–)

What’s Driving the Strong ISM Reading:

  1. Resilient Manufacturing Activity: Today’s ISM print came in notably above consensus—say, 55.5, versus an expected 53.0—highlighting stronger production and order intake.
  2. Rising New Orders & Backlogs: Key subcomponents—new orders and backlog indices—also exceeded expectations, showing firms anticipating ongoing demand.
  3. Stable Pricing & Employment: Prices paid and employment segments remain firm, suggesting manufacturing firms are passing on costs and hiring despite broader soft spots.
  4. External Demand & Inventory Rebuilding: Increased global demand or restocking tendencies (especially in auto and tech sectors) are bolstering activity.

These signals hint at economic resilience, reducing market expectations of near-term rate cuts—dovetailing into a bearish setup for gold.


Why This Pressures Gold (XAU/USD)

  • Fed Rate Path Intact or Raised: Strong ISM reduces rate-cut odds; markets lean toward higher or prolonged rates, raising real yields.
  • Stronger U.S. Dollar: Hawkish sentiment boosts the dollar, reducing gold’s appeal in other currencies.
  • Lower Safe-Haven Demand: Economic strength lessens urgent risk-off flows; gold loses a bid.


Previous released data results :

On last ISM data (1-7-2025) we predicted good data, & as per that we suggest to SELL XAUUSD & as a result, we made a profit of 62 points according to the signal we gave.  

Check the previous blog : https://blog.forextrade1.co/us-ism-data-and-gold-prices-what-to-expect-in-todays-market/
Check last given signal : https://t.me/calendarsignal/19295 
Performance : https://t.me/calendarsignal/19316


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