Gold price fails to recover as Manufacturing PMI and Job opening miss estimates

Gold price fails to recover amid weaker demand reported by World Gold Council, weak factory activities, and job openings data.
US factory activities contracted for the ninth month in a row and job openings missed expectations.

Fed Goolsbee favors more interest-rate hikes from Fed despite easing inflation.

Gold price (XAU/USD) faced immense selling pressure while attempting to sustain above the crucial resistance of $1,970.00 on Tuesday as gold demand remained weak in the first half of 2023. World Gold Council (WGC) reported a decline in gold purchases by 2% YoY due to higher gold prices and an aggressive rate-tightening cycle by global central banks. Apart from that, the immense strength of the Greenback builds severe pressure on bullion.

US Manufacturing PMI contracted straight for the ninth month and landed at 46.4 below expectations of 46.8. While Factory Orders landed at 47.3 and outperformed expectations of 44.0. US JOLTS Job Openings data were released at 9.582M against the prior release of 9.62M.  After the hangover of US factory activities, investors will shift to labor market data, which will set an undertone for the Federal Reserve’s (Fed) September monetary policy. For now, the chances of an interest rate hike from the Fed in its September policy are lower.