The US Dollar remains weak, affecting its value, while expectations of prolonged higher interest rates from the Federal Reserve may restrict gold’s gains.
Economic Impact Of Interest Rates
Recent tariffs imposed on Mexico and Canada and the potential for reciprocated tariffs from China contribute to market apprehension.
Economic indicators remain a central focus. The latest ISM Manufacturing PMI slipped to 50.3 in February, barely holding in expansion territory, suggesting the economy is not firing on all cylinders.
Key Technical Levels To Watch
Traders will be paying close attention to upcoming key releases, especially the Nonfarm Payrolls report. Any surprises there could alter the outlook for both the dollar and gold, shifting short-term expectations.
