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The S&P Global US Composite PMI rose to 53.5 in April 2023, up from 52.3 in the previous month, to signal the quickest upturn in business activity since May 2022.
Weak data weighed on U.S. dollar. Gold hovered around $2,000 and oil plunged to the lowest level since the end of March.
Gold prices fell below the key $2,000 level as the dollar and Treasury yields regained footing on Wednesday. Oil slid about 2% to a two-week low despite a sharp decline in U.S. crude inventories.
The dollar fell against most major currencies on Tuesday after better-than-forecast growth data from China. Gold rebounded after dipping below $2,000 an ounce.
The central question facing the Fed is what to do with interest rates at a time when the current economic data shows continued strength and inflation well above the Fed’s target, but stresses in the banking system threaten to derail growth. Traders are pricing in a quarter-point hike in January, according to the CME tool.