For a long time, traders considered American Non-farm Payrolls (NFP) the most important release in the market. However, the situation has changed. Now US CPI moves financial markets.
Yellow metal tumbles as China’s manufacturing data improves confidence
On Monday, gold inched down because better-than-anticipated China manufacturing data soothed some fears about a deceleration in the economic surge and also spurred appetite for risky assets.
China's Caixin/Markit Manufacturing Purchasing Managers' Index went up to 50.8 from February’s outcome of 49.9. It turned out to be the strongest outcome for eight months.
Profits for the private indicator emerged on the heels of China’s official manufacturing PMI uncovered on Sunday that tacked on to a six-month maximum of 50.5 in March from February’s reading of 49.2.
In fact, the data states that China's ailing manufacturing sector is on the way to recovery, soothing worries that the world's number two economy could slump into a steeper economic downturn.
On the Comex exchange, gold futures headed south by 0.3% reaching $1,294.25 a troy ounce.
Besides this, spot gold ending up with $1,289.81 an ounce, decreased by about 0.2%, having reached its lowest value since Friday’s outcome of $1,286.35.
Market participants looked ahead to a busy week of American economic data that should provide further clarity on whether the US economy is actually losing steam or just tumbling through a mild patch.
The March American jobs report at the end of this week is going to be the key event for financial markets. Aside from the employment report, the week's calendar also comes with major American retail sales figures and also the latest data on the country’s manufacturing activity.
Evaluating the evergreen buck’s value versus its primary peers the USD index decreased by 0.2% showing 96.64, having surged to 96.91 on Friday, which is its strongest reading since March 13.
Aside from that, silver futures decreased by 0.4% showing $15.04 a troy ounce.
Palladium futures headed north by 0.5% trading at $1,348.15 an ounce. Additionally, platinum futures decreased by 0.6% showing $849.40 an ounce.
United States Bureau of Labor Statistics will release monthly average hourly earnings, non-farm employment change (NFP), and unemployment rate on November 5, 14:30 GMT+2.
United States Bureau of Labor Statistics will release monthly average hourly earnings, non-farm employment change (NFP), and unemployment rate on October 8, 15:30 GMT+3.
This week may be the most important since the year started as the Fed assess the economic outlook and the US presents fresh NFP readings.
S&P Global, a private banking company, will release a monthly change in British Flash Manufacturing Purchasing Managers Index (PMI) on January 24, 11:30 GMT+2. The index is a leading indicator of economic health as businesses react quickly to market conditions, and purchasing managers hold the most current and relevant insight into the company's view of the economy.
The United States Bureau of Labor Statistics will publish the US Consumer Price Index (CPI) m/m on January 12 at 15:30 GMT+2. The index measures a change in the price of goods and services purchased by consumers.