Gold price falls, after hitting a daily high of $2,462.
ISM report shows manufacturing activity at recessionary levels, spurring economic fears.
US jobless claims rise, highlighting labor market weakness; geopolitical tensions in the Middle East add to safe-haven demand for Gold and USD.
Gold price edges lower during the North American session after hitting a daily low and high of $2,430 and $2,462, respectively, amid a stronger US Dollar. The Greenback recovered after data showed that business activity in the manufacturing sector contracted, while US jobs data underscored the weak labor market. At the time of writing, the XAU/USD trades at $2,438, down 0.35%.
The financial markets turned risk-averse following an Institute for Supply Management (ISM) report that underscored that manufacturing activity in July tumbled to recessionary levels and printed its lowest reading since December 2023. This spurred fears that the Federal Reserve is behind the curve and that the economy could be headed instead for a harder landing.
This is reflected by US equities plunging between 1.56% and 3.27% while US Treasury bond yields sink sharply. This bolstered the golden metal and the Greenback, which investors seek due to their safe-haven status.
