Economic activity in the US services sector rose unexpectedly last month, official figures showed on Friday. The Institute for Supply Management reported its Purchasing Managers' Index for the services sector climbed to 57.6 in February, while market analysts expected the Index remain unchanged from the prior month's reading of 56.5 during the reported period. Any reading above the 50-point level indicates activity expansion in the services sector. Furthermore, the Non-Manufacturing Business Activity Index came in at 63.6, the highest level since February 2011, up from the previous month's 60.3. Data also showed the New Orders Index increased to 61.2, the highest since August 2015, following January's 58.6. The ISM said 16 out of 18 industries reported growth last month, adding that the share of companies expressing a positive outlook for the future rose markedly last month despite the existing uncertainty in the US economy. Economic activity contracted in the information industry and the real estate, rental and leasing industry in February.
After the release, the US Dollar hit its intraday high of 114.54 against the Japanese Yen but failed to maintain its gains as investors awaited a speech by the Fed Chair Janet Yellen in the day
Upcoming events: Factory Orders and FOMC aftermath
During Monday's trading session fundamental events will occur in the US. At 15:00 GMT US Factory orders statistics will be published, and might cause a minor fluctuation. Afterwards, at 20:00 GMT FOMC Member Kashkari is set to give a speech.
Gold bounces around with increased volatility
Daily chart: On Monday morning the yellow metal's price remained unchanged, as the bullion attempted and failed to move higher and break the resistance put up by the 20-day SMA at 1,234.09 and the monthly R1 at 1,237.68. As a result the bullion was set to fall down to the 38.20% Fibonacci retracement level at 1,219.20, which it failed to reach on Friday because comments from US monetary policy makers bashed the strength of the US Dollar lower. That caused the yellow metal to regain the losses it had suffered, as the Buck had strengthened.Trader opinion remains firm
Spreads (avg,pip) / Trading volume / Volatility
Market participants foresee the price of Gold being above 1,250 in April
Traders who were asked regarding their longer-term views on gold between February 6 and March 6 expect, on average, to see the metal near 1,300 in April. Generally, 73% (+3%) of participants believe the price will be above 1,250 in ninety days. Alongside, 23% (-3%) of those surveyed reckon the currencies will trade in the range between 1,000 and 1,200 over the next three months.