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Gold staged a strong comeback after Monday’s PMI shocker rekindled fears of a fresh phase of Fed tightening. Against October’s reading of 54.4 and expectations of 53.3, the ISM non-manufacturing PMI had jumped to 56.5 percent in the month of November.
Gold Futures for February Settlement which had plunged 1.54 percent to $1,781.30 on Monday has rebounded 0.63 percent on Tuesday to trade at $1,792.60. Prices oscillated between $1,779.15 and $1,792.70.
Spot Gold also gained 0.65 percent to trade at $1,780.16 per troy ounce. The day’s range has been between $1,767.44 and $1,780.59.
The yellow metal’s resilience and bullishness stood out amidst predominantly bearish sentiment engulfing other risk assets like stocks and cryptocurrencies.
Gold’s price trajectory in the days to come would greatly be influenced by the producer price inflation readings due on Friday and the consumer price inflation readings due on the following Tuesday. Expectations regarding the Fed’s likely interest rate action at the upcoming review on December 14 could be the ultimate short-term catalyst for the yellow metal’s price action.
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