Daily digest market movers: Gold remains steady, though tilted to downside following Monday's slump
- S&P Global revealed that US business activity in the manufacturing sector shrank. This month, the Manufacturing PMI dived from 51.9 to 49.9. On the other hand, the Services and Composite Index decelerated from 51.7 and 52.1 to 50.9 in both readings.
- Other data showed that New Home Sales jumped to a six-month high, according to the US Department of Commerce, while Building Permits remained in contractionary territory despite being revised up from -4.3% to -3.7%.
- US Dollar Index (DXY), which tracks the buck’s performance against a basket of six other currencies, plunges 0.44% to 105.68.
- This week, the economic docket in the United States (US) will feature the release of the Gross Domestic Product (GDP) for the first quarter of 2024. Analysts estimate that GDP grew 2.5%, down from Q4 2023’s 3.4%.
- Also, the US Bureau of Economic Analysis would reveal the preferred inflation gauge of the Fed, the March Personal Consumption Expenditure (PCE) Price Index. A softer reading than expected could prompt Gold traders to buy the yellow metal and aim to refresh all-time highs. Otherwise, a rise in prices could underpin US Treasury yields and the Greenback, a headwind for the non-yielding metal.
- The PCE is expected to edge higher, while the Core PCE is expected to decrease from 2.8% to 2.6% YoY.
- Data from the Chicago Board of Trade (CBOT) suggests that traders expect the fed funds rate to finish 2024 at 4.955%, down from Monday's 4.99%.
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