DOLLAR INDEX DOLLAR index at exactly 12;30 gave us a clear sell which gave gold buyers the opportunty to go long from 3475 level to 3530 and extending its gain on daily
The US Dollar Index (DXY) is a financial index that measures the value of the United States dollar relative to a basket of six major foreign currencies. It is widely used to gauge the overall strength or weakness of the US dollar in global currency markets.
Key Facts About DXY:
The index is calculated as a weighted geometric average of the US dollar’s exchange rates with six major currencies:
Euro (EUR): 57.6% weight (the largest component)
Japanese Yen (JPY): 13.6% weight
British Pound (GBP): 11.9% weight
Canadian Dollar (CAD): 9.1% weight
Swedish Krona (SEK): 4.2% weight
Swiss Franc (CHF): 3.6% weight
The DXY rises when the US dollar strengthens against these currencies and falls when it weakens.
It was created in 1973 following the collapse of the Bretton Woods system to provide a standardized benchmark for the dollar's value.
The index is maintained and published by the Intercontinental Exchange (ICE).
Why DXY Matters:
The DXY is a key indicator for traders, economists, and investors to assess the dollar’s performance globally.
It affects pricing in global trade and commodities, which are often denominated in US dollars, such as oil and gold.
Movements in the DXY influence monetary policy decisions, financial markets, and global economic dynamics.
In essence, the DXY is the benchmark for measuring the US dollar’s strength against a basket of significant global currencies, providing a comprehensive picture of its international value.
UNITED STATE ECONOMIC DATA REPORT TODAY.
The latest US ISM Manufacturing PMI (Purchasing Managers' Index) is 48.7 for August 2025, slightly below the forecast of 49.0 but above the 48.0 previous A PMI below 50 indicates contraction in the manufacturing sector, so this points to a modest slowing but less severe than expected.
The ISM Manufacturing Prices Index stands at 63.7, down from 65.1 forecasted and marginally below the 64.8 previous data . This index measures prices paid by manufacturers for raw materials and inputs, and a reading above 50 signals rising input costs. The current elevated level suggests continued inflationary pressures on manufacturing costs, although slightly easing.
Summary:
US ISM Manufacturing PMI: 48.7 (contracting modestly, slightly better than forecast)
US ISM Manufacturing Prices: 63.7 (input costs rising, but showing some easing)
These indicators suggest the US manufacturing sector is experiencing a mild contraction, with inflationary cost pressures moderating somewhat but still elevated. This mixed data can influence Federal Reserve policymaking, signaling slower growth but persistent price pressures.
The COMEX gold price today, September 2, 2025, is trading near $3,550 to $3,567 per troy ounce. The gold futures recently surged, hitting new record highs above $3,550, supported by expectations of a Federal Reserve rate cut and ongoing geopolitical uncertainties. Gold has gained over 1% on the day, reflecting strong safe-haven demand amid dollar weakness and inflation concerns.
In summary:
COMEX Gold price around $3,550 - $3,567 per ounce (September 2, 2025)
Recent gains driven by Fed rate cut expectations and geopolitical risks
Price at record levels, reflecting strong investor interest
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