Impact of US ISM PMI data on gold – 3-6-2024

The Institute for Supply Management’s Purchasing Managers’ Index (PMI) is an important economic indicator that measures the activity level of purchasing managers in different industries. It provides insights into the health of the economy, including the level of manufacturing activity, supplier deliveries, employment, and prices. When the US ISM PMI data shows negative results, it can have a profound impact on gold prices. In this document, we will explore the impact of bad US ISM PMI data on gold.

Today’s given signal :

When the US ISM PMI data releases a negative reading, it typically causes investors to seek safe haven assets, such as gold. This is because gold is seen as a hedge against inflation and uncertainty, and its demand tends to increase in periods of economic instability.

Moreover, negative US ISM PMI data often indicates that there is a slowdown in manufacturing activity, which can impact the overall economy. When economic growth is sluggish, central banks may lower interest rates to stimulate economic activity. However, lower interest rates can also drive inflation, which can increase the value of gold as a hedge against rising prices.

As a result, gold prices tend to rise when negative US ISM PMI data is released, as investors seek to protect their wealth and hedge against potential inflationary pressures. The price increase can be driven by both an increase in demand for gold and a decline in the US dollar, as gold is priced in US dollars.

It is important to note that the impact of negative US ISM PMI data on gold prices can be influenced by a variety of factors, including the overall market conditions, other economic indicators, and geopolitical developments. However, as a general rule, the release of negative US ISM PMI data is typically associated with an increase in the price of gold.

Previous released data results :

On last ISM data (1-5-2024) we predict to BUY XAUUSD as for bad ISM Data price was raised.

Check the previous blog :

Check last given signal :

Performance :