Gold hovered near the $1,930 mark on Friday, rebounding from its three-month low of $1,910 touched earlier in the session and tracking the rise in other safe-haven assets as a batch of concerning data triggered concerns of incoming significant economic contraction, offsetting the opportunity cost of holding bullion ahead of interest rate hikes for key central banks. The latest PMI figures showed that manufacturing sectors in the US and Europe contracted at a much faster pace than expected, while services growth slowed. In the meantime, initial jobless claims have persistently surpassed market forecasts and stand at 2021 highs. The figures coincided with hawkish signals from the world’s largest monetary authorities, with Fed Chair Powell emphasizing the need to continue raising borrowing costs despite the marked slowdown in the economy and softening in the labor market.
