What is the secret of the decline in gold prices globally? By Investing.com

It saw a significant decline from levels above $2,100 to $2,036 as the US dollar gained strength, with the DXY index, which measures the currency against a basket of other major currencies, rising to 103.96. This shift indicates a growing preference for the dollar among investors.

The economic landscape offers mixed signals. The Institute for Supply Management (ISM) non-manufacturing Purchasing Managers’ Index (PMI) beat market expectations by recording at 52.7, indicating continued expansion in the services sector. However, the Job Opportunities and Labor Turnover (JOLTs) survey reported that job openings fell to a multi-year low of 8.733 million, indicating some cooling in the labor market.

Looking to the future, market participants turn their attention to gain additional insights into the economic trend. The job change report and non-farm payrolls in particular will be scrutinized for their potential impact on gold prices and broader financial markets.

Moreover, forecasts from the Federal Reserve Bank of Atlanta’s GDP model suggest that economic growth in the fourth quarter may be weak, at just 2%.

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