After the previous day, gold drew an indecision candle where the price formed a small-bodied bearish candlestick with long shadows at the top and bottom of the candle. However, yesterday the price of gold fell sharply from a high of $2458 to a low of $2364 due to continued profit-taking.
However, this profit-taking action was met with resistance from buyers so the price formed a bearish candlestick with a long body and a long shadow at the bottom of the candle.
Yesterday's US economic data, ISM Services PMI showed a value of 51.4 slightly higher than the estimate of 51.1 with a revision of the previous data of 48.8. This economic data is one of the drivers of USD strengthening. However, on the other hand, the Final Services PMI data is lower than expected, giving a mixed picture of conditions.
Gold should take support from widespread geopolitical risks in the Middle East, where attacks on Israel are now besieged by Iran, Yemen and Lebanon. Reportedly, Israel's ally, America, asked Jordan for permission to use its airspace to prevent attacks by Israel's enemies.
However, this gold price phenomenon is quite interesting because there are other factors that investors consider.
China, which is the largest importer of gold, is also experiencing a vulnerable phase due to poor domestic demand. The Caixin Manufacturing PMI surprisingly contracted in July to 49.8.
Meanwhile, slowing US economic growth also triggered market changes. The July Nonfarm Payrolls (NFP) report showed that labor demand slowed significantly. Unemployment Rate jumped to 4.3% compared to expectations and previous release of 4.1%.
However, according to the Fedwatch tool, there is a decline in confidence that the Fed will lower interest rates. This tool estimates the Fed rate at 475-500 bps at 73.5% while the estimate for 500-525 is only 26.5%. The Fed is likely to lower interest rates in September, which is estimated to be a 50bps reduction.
View attachment 7242
However, this profit-taking action was met with resistance from buyers so the price formed a bearish candlestick with a long body and a long shadow at the bottom of the candle.
Yesterday's US economic data, ISM Services PMI showed a value of 51.4 slightly higher than the estimate of 51.1 with a revision of the previous data of 48.8. This economic data is one of the drivers of USD strengthening. However, on the other hand, the Final Services PMI data is lower than expected, giving a mixed picture of conditions.
Gold should take support from widespread geopolitical risks in the Middle East, where attacks on Israel are now besieged by Iran, Yemen and Lebanon. Reportedly, Israel's ally, America, asked Jordan for permission to use its airspace to prevent attacks by Israel's enemies.
However, this gold price phenomenon is quite interesting because there are other factors that investors consider.
China, which is the largest importer of gold, is also experiencing a vulnerable phase due to poor domestic demand. The Caixin Manufacturing PMI surprisingly contracted in July to 49.8.
Meanwhile, slowing US economic growth also triggered market changes. The July Nonfarm Payrolls (NFP) report showed that labor demand slowed significantly. Unemployment Rate jumped to 4.3% compared to expectations and previous release of 4.1%.
However, according to the Fedwatch tool, there is a decline in confidence that the Fed will lower interest rates. This tool estimates the Fed rate at 475-500 bps at 73.5% while the estimate for 500-525 is only 26.5%. The Fed is likely to lower interest rates in September, which is estimated to be a 50bps reduction.
View attachment 7242
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