Support
Gold prices above three-week low
Traders are cautious on gold, awaiting key U.S. macroeconomic data for clearer direction amid limited follow-through buying
WTI crude rebounded
USD/JPY remained below 150
Investors waiting the ISM report
Key U.S. Data Releases
- S&P Global Manufacturing PMI (Feb) is expected at 51.6, suggesting moderate growth in the manufacturing sector if met.
- ISM Manufacturing Employment Index (Feb) is projected at 50.3, indicating potential stabilization in manufacturing jobs if the forecast holds.
- ISM Manufacturing New Orders Index (Feb) is forecasted at 55.1, hinting at a possible rebound in demand if realized.
- ISM Manufacturing PMI (Feb) is awaited as a key measure of the overall health of the U.S. manufacturing sector and its potential influence on the Federal Reserve's policy outlook.
Market participants are closely monitoring these releases to assess their impact on the U.S. Dollar and broader market sentiment.
Currencies
The USD/JPY pair remained weak, trading below 150, as the Japanese yen found support from rising expectations of further rate hikes by the Bank of Japan (BOJ). The dollar’s softness was also linked to market speculation about potential Federal Reserve rate cuts by the end of the year.
Commodities Markets
Gold prices maintained a level above a three-week low on Monday, despite limited buying interest. The metal's stability was aided by expectations that the Federal Reserve might lower interest rates twice by year-end, which weighed on the U.S. Dollar. Persistent geopolitical risks, particularly surrounding U.S. tariff policies and uncertainties in Ukraine, also helped sustain demand for the safe-haven asset.
However, traders appeared cautious, refraining from making large bets on gold until after the release of key U.S. macroeconomic data later this week. The absence of strong follow-through buying suggests that the outlook for gold could hinge significantly on the direction of the U.S. Dollar and further developments in geopolitical tensions.
Oil prices saw a modest rebound, with WTI crude trading around $70.10 per barrel. The recovery was driven by heightened geopolitical risks.
In addition to geopolitical factors, traders are also focused on the demand outlook, particularly in light of the ISM Manufacturing PMI data due later in the day. Uncertainty over U.S. tariff policies and their impact on global trade flows added a layer of caution, preventing a stronger rebound in crude prices.
