Gold prices hover below $2,000; US PMIs awaited
Investing.com-- Gold prices hovered just below key highs on Friday as a U.S. market holiday made for scant trading cues, with focus now turning to upcoming business activity readings for more cues on the world’s largest economy.
The yellow metal was still headed for a second straight week of gains, amid growing conviction that the Federal Reserve was done raising interest rates. It also remained in sight of the coveted $2000 an ounce level, which it had breached earlier in the week.
But gold failed to hold the level after strong labor market data and hawkish signals from the Fed spurred doubts over when the central bank planned to begin trimming rates.
Spot gold rose 0.1% to $1,993.75 an ounce, while gold futures expiring in December rose 0.1% to $1,994.70 an ounce by 00:00 ET (05:00 GMT). Both instruments were set to add between 0.5% and 0.7% this week.
A muted overnight session in the dollar index, on account of the U.S. Thanksgiving holiday, also provided few cues to gold.
Gold saw sharp gains earlier in November as markets bet that the Fed will raise interest rates no further. But given that the central bank still reiterated its higher-for-longer outlook on rates, future gains in the yellow metal remained in doubt.
Markets were now awaiting U.S. purchasing managers index data, due later in the day. The readings are expected to show sustained weakness in business activity, as the world’s largest economy cools under high interest rates and sticky inflation.
Any signs of weakness in the U.S. economy gives the Fed limited headroom to keep rates higher, and also increases the chances of an early rate cut.
Weak PMI readings from the euro zone and Japan also pointed to weakening economic trends across the globe, which in
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