Commodities
Dollar Rebound Slows Gold Rally Amid Strong ISM Data
Gold prices fell on Monday as the US Dollar (USD) rebounded after recovering from month-and-a-half lows, despite President Donald Trump's comments on the Iran conflict.
The XAU/USD pair traded at $4,037, down 0.12%, while the US Greenback bounced off its earlier lows following an intervention in the FX markets by US and Japanese authorities.
ISM data showed that the Manufacturing Purchasers Managers Index (PMI) expanded at the highest pace in four years, with the PMI improving from 53.3 to 55.6, exceeding forecasts of 54.
The strong economic data led investors to expect 22 basis points of tightening towards the end of 2026, according to Prime Terminal data, potentially prompting a repricing toward a more hawkish Federal Reserve.