The price of gold dropped significantly by $40 after the ECB signaled that it would not cut interest rates as aggressively as expected. However, the short-term movement of gold prices will depend on the upcoming PMI data.4o


If the PMI data is better than expected (indicating economic strength), it could push gold prices down further due to reduced safe-haven demand. In this case, going short on gold might be the better option.


If the PMI data is worse than expected (signaling economic weakness), gold could bounce back as investors seek safety. In that scenario, going long on gold could be more favorable.

Gold Price Drops by $40 Amid ECB Signals, Short-Term Movement Depends on Upcoming PMI Data

Oct 24 2024