It seems to be a good month for XAU/USD as Gold prices were seen rallying at 2.32% today, for the first time in about months, extending gains since prices turned higher in late September.
The yellow metal is now up over 4.7% since the September low of 1614, causing XAU/USD to climb higher at the beginning of the fourth quarter with a weaker US Dollar and softening Treasury yields.
The US ISM manufacturing data suddenly softened, with the main gauged clocked in at 50.9 in September, down from 52.8 before 52 expected. Readings above 50 indicate expanding economic activity and vice versa.
Markets sentiments follow expectations on how incoming US economic data may shape the Federal Reserve’s plan for proceeding with interest rates. Economic prints could be triggered by rises or beat volatile reactions in various corners of financial markets. While markets are still pricing in hikes for next year, those were somewhat eased on Monday.
The markets are awaiting the fate of gold over the remaining 24 hours. The Reserve Bank of Australia might raise interest rates during Tuesday’s Asia-Pacific trading session. This movement will certainly threaten gold.
That said, Asia-Pacific markets may follow the relatively rosy session set by Wall Street. The Dow Jones and S&P 500 rallied 2.66% and 2.59% on Monday, respectively.