Gold jump above $1,480 after US data, USD tumbles

• XAU/USD rose almost $20 following the ISM Manufacturing report. 
• US Dollar reversed sharply after data, DXY turned negative. 

Gold rose jumped from $1,463/oz to $1,485 hitting a fresh daily high. The yellow metal bounced sharply following the release of US data that triggered a decline of the Greenback across the board. 

Earlier today, XAU/USD bottomed at $1,458 the lowest level in almost two months. Then bounced dramatically signaling that the bearish run from near $1,540 (last week high) might be over. 

The Markit PMI showed economic activity in the US manufacturing sector expanded at a modest pace in September but a few minutes later the ISM presented a different picture showing a decline from 49.1 to 47.8 in September below market expectations of a 50.1 reading. 

The report triggered a rally in US bonds, sending yield lower. The 10-year fell from 1.74% to 1.62% in a few minutes, weakening the Dollar, particularly against the Japanese Yen. Even commodity and emerging market currencies recovered ground, although still hold in negative territory. 

Levels to watch 

As of writing, XAU/USD stands at $1,484 up $25 from the daily low. On the upside, the immediate resistance is seen at $1,485 followed by $1,500 and $1,512 (Sep 26 high). On the flip side, support could be seen at $1,474 and $1,464 that protects the recent low at $1,458.