Manufacturing activity in the US slowed in February. The report from ISM shows that manufacturing activity fell to 50.1, missing estimates of 50.5. This was down from 50.9 in January.
However, the index remains above the 50-level, suggesting expansion in the sector. The slowdown in activity coincides with the virus outbreak which has slowed business globally.
XAU/USD Retraces Declines
Gold prices are retracing the losses from last Friday. Price action quickly bounced back after testing the support area near the 1572 – 1569 level. Following this bounce, price action has moved higher. The current pullback to the 1594 level could see a possible continuation to the upside. The next main resistance is at 1631 level.
