This week holds significant central bank meetings, with the Federal Reserve’s meeting on Wednesday being particularly noteworthy. Interest rates have either reached their peak levels or are very close to doing so, and there is a possibility that this week could witness the Fed and ECB announcing their final rate hike in their tightening cycles.

PMI data offers insights into the ongoing global economic cooling trend. Inflation is also on the decline, largely due to favorable base effects, falling energy prices, and slower growth in food costs.

Recent PMI data from the eurozone, the UK, and the US all convey a similar message. The manufacturing sectors continue to face challenges, with the US performing better than expected. However, expectations for growth in services are slowing. These surveys indicate clear signs of further economic cooling, reduced inflationary pressures, and weaker hiring trends.

While central banks may find some relief in the data, it’s unlikely to be sufficient for them to claim victory or explicitly announce the end of their tightening cycles. Policymakers will proceed with extreme caution, although they will be encouraged by the positive data observed over the last month or two.

Gold, in the meantime, appears to be pausing momentarily in anticipation of the upcoming Fed meeting on Wednesday. The yellow metal recently received a significant boost from positive economic data, coming close to reaching the $2,000 mark at one point last week. Investors will closely monitor the Fed’s decisions and statements for further clues about the future direction of gold prices.