Gold grinds higher with bullion in favor as safe haven

LONDON (February 5) Gold’s price (XAU/USD) rallies for a fifth consecutive day in a row on Wednesday, accounting for more than 2.5% of gains this week and hitting fresh all-time highs near $2,877 with investors piling into the precious metal commodity. Softer economic data from the United States (US), which further supports the case for another rate cut from the Federal Reserve (Fed), together with quickly fading tariff fears, is lifting Gold to higher levels day by day. 

On the economic data front, the calendar could become an additional tailwind for Gold to stretch even higher. This Wednesday, US Purchasing Managers Index (PMI) data for January will be released. A softer PMI print could be enough to set off Gold again to a new all-time high. 

Daily digest market movers: Hits where it hurts

• Investors and traders are parking their cash under Gold, away from tech stocks, whilst being safe from the fresh lows in US yields as inflation concerns abate, Bloomberg reports.
• At 14:45 GMT, S&P Global will release the January final reading for the Purchasing Managers Index. The ISM Services PMI is expected to stay stable at 52.8.
• At 15:00 GMT, the Institute for Supply Management (ISM) will also release its PMI data for the Services sector as a whole:
  • The PMI is expected to tick up to 54.3 from 54.1 in December.
  • The Prices Paid component was at 64.4 last time and has no forecast.
• The CME FedWatch tool shows an 83.5% chance of keeping interest rate unchanged in the March 19 meeting, compared to 16.5% for a 25 basis points rate cut. 

FXStreet