Be Attentive Ahead of U.S. Final Wholesale Inventory Results, High Volatility Likely in Gold; May 9, 2022
A Short Term Outlook: XAU/USD (Gold)
Gold spikes down sharply ahead of U.S. session and U.S. Wholesale Inventories data and touches $1,856 mark. It’s a signal of future business spending because companies are more likely to purchase goods once they have depleted inventories. There are 2 versions of this indicator released about a week apart – Preliminary and Final. The Preliminary release is the earliest and thus tends to have the most impact.
Let’s see how Gold has reacted during the previous data release:
- Gold weakens sharply on Monday and slips back below $1,860 mark.
- Today pair made intraday high at $1,885 and low at $1,856 mark.
- A day chart and H1 chart with triple EMA suggest bearish trend for the time being.
- A sustained close above $1,865 on H1 chart requires for the upside rally.
- Alternatively, a consistent close below $1,852 on H1 chart will test further supports.
Take a look and do trade wisely!