Daily digest market movers: Gold price stays firm amid steady US Dollar, falling US yields
- Gold price climbs as US Treasury bond yields drop. The US 10-year Treasury bond yield has fallen three basis points (bps) to 4.653%, boosting the golden metal. At the same time, the Greenback, as measured by the US Dollar Index (DXY), is virtually unchanged, down 0.03% at 106.20.
- US manufacturing business activity showed mixed results recently. The S&P Global Manufacturing PMI registered at 50.0, which was above expectations but lower than the previous month's 51.9, indicating a stabilization in manufacturing activity.
- Contrarily, the ISM Manufacturing PMI indicated a contraction in the sector with a reading of 49.2, falling short of the expected 50.0 and down from March's expansionary figure of 50.3.
- April’s ADP Employment Change reported an increase of 192,000 jobs, surpassing estimates of 175,000 but still below the upwardly revised March figure of 208,000. Additionally, the JOLTS Job Openings for March dropped to 8.488 million, marking the lowest level of job openings reported, down from 8.813 million.
- The US economy continues to print mixed readings. Last week, the Gross Domestic Product (GDP) missed the mark. Still, inflationary data linked to the first quarter of 2024 sounded the alarm that the price trend is shifting to the upside, which might prevent the Fed from easing policy sooner than expected.
- On May 3, the US Bureau of Labor Statistics (BLS) is expected to reveal April’s Nonfarm Payrolls figures, which are expected to come at 243K, below March’s 303K. The Unemployment Rate is estimated to stay at 3.8%, while Average Hourly Earnings would likely remain unchanged at 0.3% MoM.
- Data from the Chicago Board of Trade (CBOT) suggests that traders expect the fed funds rate to finish 2024 at 5.100%, up from 5.080% on Tuesday.
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