#BinanceABCs How does the combined signal of non-farm payroll data and manufacturing PMI affect gold prices? This study is worth a look.

Friends who trade gold know that non-farm employment and PMI are often key factors in determining the direction of gold prices. But the real play lies in the effects when they appear together.

**Two Weak Signals: Gold Price Rally Indicator**
Weak employment data combined with a soft manufacturing PMI immediately signals market concerns about an economic slowdown. At this point, expectations of rate cuts flood the market, risk-free rates plummet to the bottom, and the safe-haven and inflation-hedging qualities of gold are activated simultaneously, often leading to a noticeable rise in gold prices.

**A Strong and a Weak Signal: Subtle Game of Tug-of-War**
Weak non-farm data but decent PMI? This combination can confuse traders. On one hand, the economic data ignites expectations of rate cuts; on the other hand, the resilience of manufacturing gives the Fed reasons to hesitate, so rate cuts may not be imminent. The upward momentum of gold is dulled by this tug-of-war, and you may see the gains narrow.

**Strong Employment but Weak Industrial Data: Conflicting Signals**
Solid non-farm payrolls but PMI on the brink of recession. The market then faces conflicting signals, with funds waiting for new guidance. Gold prices usually stagnate within a range or even appear somewhat weak, and a major trend is unlikely to develop at this time.

**Both Strong Signals: Pressure on Gold Prices**
Full employment and strong industrial production indicate a robust economy. The Fed’s desire to cut rates again becomes somewhat unnecessary, and real interest rates may even rise, directly suppressing gold valuation. In such an environment, gold prices are prone to a trend downward. $BTC $ETH investors also often assess risk asset allocations during these times.