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Gold surged on weak US PMI data

Today’s data of US totally changed the condition of USD which was earlier trading higher against all its major counterparts. Institute of Supply management reported US manufacturing PMI which shows that manufacturing expanded in January with a reading of 51.3% a decline of 5.2 points if compared with December’s seasonally adjusted reading of 56.6%. Although a reading above 50% indicates that manufacturing economy is generally expanding but the report showed that it expanded at the slowest pace in eight months as the pace of new orders declined. The ISM’s new orders index plunged 13.2 points to 51.2% which was the lowest level since May. After the data USD weakened against all its major counterparts. Dollar index which gauge the performance of dollar against 6 other major currencies also declined to 81.10 and may find support at 81.08. Significant movement was seen in Gold and the pair found resistance at 1263.96 and the pair could fall from this level.