Strong PMIs, Claims Rise: Gold on Alert
Gold (XAU/USD) held below $3,350 after briefly dropping to $3,325 in the European session, then pared some of its losses in the US session. The recovery was hampered by a strong US dollar and persistently high Treasury yields, making the $3,350 resistance area still elusive.
At the time of writing, XAU/USD was hovering around $3,339, with an intraday high of $3,352. Price action reflects cautious consolidation ahead of Fed Chair Jerome Powell's speech at Jackson Hole on Friday, with many market participants reluctant to open new positions within the current narrow range.
Data from the S&P Global PMI survey (August flash) indicates the US economy remains strong: the Manufacturing PMI rose to 53.3 (returning to expansion) from 49.8 and beat the forecast of 49.5; the Services PMI fell slightly to 55.4 from 55.7 but remained above expectations of 54.2; The Composite PMI edged up to 55.4 from 55.1. At the same time, Initial Jobless Claims rose to 235,000 (an 8-week high) versus the consensus of 225,000, signaling a cooling in the labor market.
The FOMC minutes highlighted that most officials viewed the inflationary risks from the new tariffs as greater than the weakening labor market. Many companies are expected to gradually pass on cost increases to consumers. While some members pushed for faster cuts, the majority favored holding policy; dissent primarily came from Christopher Waller and Michelle Bowman. Going forward, the path of the cuts will depend on incoming data and the resilience of tariff-related inflationary pressures. (ayu)
Source: Newsmaker.id
