empty
 
 

Forex Analysis & Reviews: Recession fears drive up gold prices
time 02.12.2022 12:52 PM
time Relevance up to, 03.12.2022 09:20 AM

This image is no longer relevant

Gold market is holding firm above $1,800 an ounce as recession fears continue to rise, and the manufacturing sector is on the verge of contraction, according to the latest report from the Institute for Supply Management (ISM).

ISM said on Thursday that its manufacturing PMI fell to 49.0% last month, falling short of expectations from 50.2% in October. Economists had expected the value to be closer to the neutral level of 49.7%.

Accordingly, the gold market posted a significant gain overnight, with recent disappointing economic data helping prices trade near session highs, adding 3.26% over the day.

This image is no longer relevant

The report noted that activity in the manufacturing sector is now at its lowest level since May 2020.

"With Business Survey Committee panelists reporting softening new order rates over the previous six months, the November composite index reading reflects companies' preparing for future lower output," said Timothy Fiore, chair of the ISM Manufacturing Business Survey Committee, in the report.

The components of the report showed general weakness in the manufacturing sector. The New Orders Index fell below contractual agreements to 47.2% from 49.2% in October. At the same time, the Production Index fell to 51.5% compared to the previous figure of 52.3%.

However, weaker activity also helps bring down inflation. The report said that the Prices Index fell to 43% from 46.6% in October. "This is the index's lowest reading since May 2020," the report says.

Paul Ashworth, chief North America Economist at Capital Economics, said the data clearly shows the economy is stagnating and activity is expected to decline further.

"Given the global economic weakness – particularly in China and Europe – we wouldn't be surprised to see the ISM manufacturing index decline further in coming months – leaving it consistent with a recession," he said.

Irina Yanina,
Analytical expert of InstaForex
© 2007-2023
EURUSD
Euro vs US Dollar
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Start trade
Start trade

InstaForex分析评论将让您充分了解市场趋势! 作为InstaForex的客户,您将获得大量的免费服务以实现有效的交易。

  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $1000 more!
    In February we raffle $1000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

Recommended Stories

Analysis of the trading week of January 30–January 3 for the GBP/USD pair. COT report.

The GBP/USD currency pair has also begun a very strong decline this week. Despite its drop from about a month ago, we also anticipated a decline in the value

Paolo Greco 18:15 2023-02-04 UTC+2

Analysis of the trading week of January 30–February 3 for the EUR/USD pair.

The EUR/USD currency pair has attempted to maintain its recent upward trend once more this week, although, during the past two weeks, it has begun to noticeably drop. About

Paolo Greco 17:39 2023-02-04 UTC+2

The U.S. dollar is losing its appeal as a safe haven: what does this mean for the EUR/USD pair?

A strong U.S. dollar was one of the main headwinds for gold and all precious metals last year as investors embraced the currency as a safe haven. But this forecast

Irina Yanina 16:42 2023-02-03 UTC+2

Weak US jobs data will support equities and put pressure on dollar

Markets continued to take advantage of the positive sentiment that emerged after the FOMC meeting on Wednesday. This is not surprising since the start of the new year, they have

Pati Gani 13:22 2023-02-03 UTC+2

GBP/USD. Overview for February 3. 2023

The GBP/USD currency pair increased as well, though far less significant than the EUR/USD pair. Additionally, this situation ought to have caused traders to pause. Why is the euro strengthening

Paolo Greco 11:20 2023-02-03 UTC+2

EUR/USD. Overview for February 3, 2023

The EUR/USD currency pair was moving in multiple directions on Thursday, but the previous evening it left the side channel it had been in for the previous three weeks

Paolo Greco 10:47 2023-02-03 UTC+2

Bitcoin rallies on Powell's remarks

Bitcoin's 40% rally in January, the best in a month since 2020, massive capital inflows into cryptocurrency-focused ETFs, and a $250 billion increase in market capitalization over the past four

Marek Petkovich 10:17 2023-02-03 UTC+2

EUR/USD: demand falls despite latest ECB rate hike

The ECB announced a 0.5% increase in its interest rate and explicitly said that there could be a similar one in March, depending on the economic data that will come

Jozef Kovach 08:21 2023-02-03 UTC+2

EUR/USD. The Fed hit the dollar, the ECB hit the euro

The European Central Bank increased the interest rate by 50 points at this year's first meeting, while announcing a 50-point hike at the next meeting in March. Despite such hawkish

Irina Manzenko 05:13 2023-02-03 UTC+2

GBP/USD. The Bank of England disappointed the British currency

The Bank of England, following the results of the first meeting in 2023, raised interest rates by 50 basis points to a target of 4.0%. At the same time

Irina Manzenko 23:00 2023-02-02 UTC+2
现在无法通话?
提出您的问题,用 在线帮助.