Gold Prices Rise Swiftly on Mixed PMI, CDC Confirms Second US Coronavirus Patient
Gold prices, XAUUSD, jumped by 6 dollars 30-minutes following the release of the lastest US Markit Manufacturing PMI, and Services PMI. The trend in gold prices was already upwards as we have been reporting here on InvestingCube.com, but the latest mixed report about the state of the US economy caused investors to turn to gold.
The Manufacturing PMI dropped to 51.7 from 52.4 and lower than the 52.5 anticipated, while Services PMI rose to 53.2 from 52.8, and higher than the 52.9 projected. Looking at the PMI composite it is clear to see that the US economy is improving, however, the slowdown in the manufacturing sector is a concern.
Around 13:10 London time, the US CDC confirmed that a second US case of the coronavirus was identified in Chicago, this looks also to have lifted gold prices. The CDC said they have 63 people under investigation from twenty-two states, and so far eleven have been confirmed negative to have the new strain of the Coronavirus, and two have been confirmed positive.
Technically, the trend in gold prices was already upwards ahead of today’s events, and I have been suggesting that XAUDUSD could turn higher from the $1535 to $1552.63 interval. This outlook will remain in place, and it looks like the uptrend will just accelerate following today’s news, and the break to he January 21 high of $1568. The next potential target of bullish traders is the $1595.50 level, and the trend will remain upwards as long as the price trades above the January 13 low of $1535.