Gold prices rose as the dollar fell after weak data from the non-manufaturing sector, calculated by the Institute of Supply Management (ISM).
According to the data, the index fell in August to 51.4 after 55.5 in July, signaling a deterioration of the situation in a key sector of the US economy. Published on Friday,
After the most recent set o economic data the likelihood of a Fed hike this year declines. According to Fed funds futures, the probability of a hike in September is estimated at only 15% against 30% earlier.
“By itself, a possible increase in rates would not have a material adverse effect on the gold in September – said a senior analyst at Danske Bank. Really important for gold is whether the increase in rates this year signal that now the Fed is ready to speed up the cycle, because then again on the agenda will be the final normalization of interest rates. “
The market will be closely watching the release of new data from the US and any speeches by the Fed.
The cost of the October futures for gold on COMEX rose to $ 1342.9 per ounce.
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