Bringing some relief to gold, the ISM Manufacturing Index showed a slight drop for March. The reading of 61.2% does indicate expansion, making March the 20th straight month of manufacturing expansion, but it was slightly below expectations for 61.3%.
When the news was released, gold was at the end of a rout that had shoved it as low as $1,411.80. Instead of bottoming at $1,420, as I had expected, the same old $1,410 proved to be the bottom. When the ISM number was released, gold stopped its plummet and reversed sharply. $1,420 was regained, sustainably after a pullback. The news seemed to be more of a catalyst than a cause, as gold was driven down hard by the non-farm payrolls report that proved to be better than expected.
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