On Monday morning during the Asian session, gold prices remained stable around $2640.

The US manufacturing PMI improved to 49.3 in December, better than expected from the previous value of 48.4.

Continued geopolitical risks and central bank buying waves may push up gold prices.

On Monday morning during the Asian trading session, the gold price (gold/US dollar) struggled around $2640. After the strong ISM Manufacturing Purchasing Managers' Index (PMI) in the United States, the US dollar strengthened, suppressing gold prices. All eyes will be focused on the US December labor market data to be released on Friday, in search of new momentum.

According to data released by the Institute for Supply Management (ISM) on Friday, the US manufacturing PMI for December rose from 48.4 in November to 49.3. The reading is higher than the market expectation of 48.4. Optimistic data boosted the US dollar and dragged down commodity prices denominated in US dollars.

In addition, the Federal Reserve expects that reducing the frequency of interest rate cuts may weaken non yielding assets. The US central bank has decided to cut interest rates in December, but has stated that borrowing costs will decline at a slower pace than previously expected this year.

On the other hand, economic uncertainty and geopolitical tensions may boost safe haven assets like gold.

The central bank's purchasing activities may drive up the prices of precious metals. It is expected that the central bank will continue to net buy about 8 million ounces in 2025, which is basically the same as or slightly lower than in 2024.