The first half of the day saw the XAU/USD pair moving sideways a bit above $1,490. It felt modest bearish pressure in the last hour and dove to a low of $1,488. It must be noted that the drop is technical and doesn't necessarily say anything about the pair's near-term sideways future.
Durable goods orders and the IHS Markit's preliminary Manufacturing and Services Purchasing Managers' Index (PMI) data from the United States will be in close scrutiny. This would determine the possibility of the Federal Reserve announcing another cut in the 25 basis-points at its meeting next week.
TD Securities analysts, upon looking into recent data, said that a 1.3% decline in durable goods orders might happen on a monthly basis.
"We expect both core orders series to also disappoint in September, with durables ex-transportation and core capex orders declining -0.2% and -0.8%, respectively," The analysts further. "Separately, the Kansas City Fed index and the preliminary Markit survey should provide additional clues regarding the performance of the manufacturing sector in October.”
Participants might also look hard into the European Central Bank's interest rate decision and President Draghi's assessments. This would help to determine the severity of Eurozone's economic slowdown. If Draghi's remarks affect the market behavior, then the XAU/USD pair will react as well.
http://lexatrade.com/news/the-xau-usd-pair-moves-sideways-slides-to-1490