Gold Up On Weak European Data, Silver Shows Signs Of Exhaustion
Commodities are trading mixed on the last day of the week as investors are digesting poor economic data in the Eurozone.
At the same time, USD is gaining ground, while Silver is showing some exhaustion, and Palladium paused its long-tail rally.
Euro data adds concerns on global economy slowdown
PMI data in the European Union came below expectations, adding pressure on global economic slowdown concerns.
In the Euro area, the Market Manufacturing PMI declined to 47.6 in March, against expectations of a slight recovery from 49.3 in February to the expected 49.5.
The manufacturing sector number is bad for the economy as it is signaling more slowness in the European economy. Remember that any PMI number below 50 signals contraction in the sector, while a figure above 50 shows expansion.
PMI Services in the Eurozone decline from 52.8 in February to 52.7 in March, data came in line of expectations.
USD extends bounce to 1-week highs
The DXY is another factor affecting commodities as a strong USD would push Gold down.
So, the dollar index is trading positive for the second day as the DXY is extending its bounce from 95.80, where it touched a dynamic support which comes from September 2018 and January 2019.
DXY is now trading 0.37% positive on the day at 96.71, after peaking at 96.80, its highest level since March 14.
Gold posts gains after a turnaround Thursday
Gold is trading positive on Friday as investors are digesting weak economic data in the Eurozone. However, it looks like the XAU/USD is ready to give up some gains in the short term.
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