Gold Faces Volatility as US S&P & ISM Data Hits the Market

On April 1, 2025, the United States released key economic indicators: the S&P Global Manufacturing Purchasing Managers’ Index (PMI) and the Institute for Supply Management (ISM) Manufacturing PMI. Both reports indicated a contraction in the manufacturing sector, with the S&P Global Manufacturing PMI registering at 49.8, below the previous month’s 52.7, and the ISM Manufacturing PMI at 49.5, down from 50.3 in February.

Today’s given signal : https://t.me/calendarsignal/17708

Reasons for the Contraction:

Supply Chain Disruptions: Ongoing global supply chain issues have hindered manufacturing output, leading to decreased PMI readings.
Reduced New Orders: A decline in new orders suggests weakened demand, contributing to the contraction in manufacturing activity.
Labor Market Challenges: Difficulties in hiring skilled labor have impacted production capacities, affecting overall manufacturing performance.

In 2019, the ISM Manufacturing PMI was 47.8, indicating contraction in the manufacturing sector. During this period, gold prices experienced a significant increase of 18.3%, highlighting the inverse relationship between manufacturing activity and gold prices.

Impact on Gold Prices (XAU/USD):

Gold prices are sensitive to economic indicators that influence investor sentiment and the strength of the U.S. dollar. Contraction in manufacturing can lead to various scenarios affecting gold prices:

Weaker U.S. Dollar: Disappointing economic data can lead to a depreciation of the U.S. dollar, making gold more attractive as an alternative asset and potentially driving prices higher.
Increased Safe-Haven Demand: Economic uncertainty often boosts demand for safe-haven assets like gold, leading to price increases.

Contractionary manufacturing PMI readings often lead to USD depreciation and gold appreciation due to increased economic uncertainty.
Expansive manufacturing PMI figures can result in USD appreciation and gold depreciation.

Previous released data results :

On last ISM Manufacturing Purchasing Managers Index data (3-3-2025) we predicted bad data, & as per that we suggest to BUY XAUUSD & as a result, we made a profit of 36 points according to the signal we gave.

Check the previous blog : https://blog.forextrade1.co/impact-of-bad-us-ism-manufacturing-pmi-data-on-todays-gold-prices-3-3-2025/

Check last given signal : https://t.me/calendarsignal/17267
Performance : https://t.me/calendarsignal/17281

On last Services Purchasing Managers Index data (24-3-2025) we predicted good data, & as per that we suggest to SELL XAUUSD & as a result, we made a profit of 44 points according to the signal we gave.

Check the previous blog : https://blog.forextrade1.co/gold-forecast-over-the-sp-global-manufacturing-service-pmi-data-today-on-24-3-2025/

Check last given signal : https://t.me/calendarsignal/17590 Performance :https://t.me/calendarsignal/17602