Interest rate optimism brought rise in gold
Gold prices started to rise as manufacturing activity in the US hit a 3-month low and optimism that the Fed will cut interest rates this year grew again.
Gold rose the most in two weeks after weak US data reignited optimism that the Fed will cut interest rates this year.
Spot gold, which recorded a 1 percent increase in the previous session, remained flat at $2,352 per ounce on the second trading day of the week.
While the manufacturing industry Purchasing Managers Index (PMI) of the Institute of Supply Management (ISM) announced yesterday in the USA fell to 48.7 in May, below market expectations, this indicated that the contraction in the manufacturing sector continued.
Analysts stated that it is certain that the Fed will cut interest rates this year following the data in question, and that clues about the steps the Fed will take in the coming period will be sought from the employment report data to be announced this week in the USA. After the figures were announced, Treasury bond yields fell.
Gold investors will follow the JOLTS data on job vacancies, factory orders and durable goods orders in the USA today.