Be Cautious Ahead of U.S. Industrial Production Data, $5+ Volatility Expected in Gold; Dec 15, 2020
U.S. Industrial Production & Capacity Utilization Rate
U.S. is going to release key economic data around 1415 GMT/1945 IST. Industrial production is a leading indicator of economic health – production reacts quickly to ups and downs in the business cycle and is correlated with consumer conditions such as employment levels and earnings. In addition, Capacity Utilization Rate is a leading indicator of consumer inflation. If the actual data comes higher than expected, it will be good for U.S. dollar.
Let’s see how Gold has reacted during the previous data release:
XAU/USD (Gold): Gold strengthens sharply on Tuesday and touched $1,848 mark. Today pair made intraday high at $1,848 and low at $1,825 mark. A sustained close above $1,840 requires for the upside rally. On the other side, consistent close below $1,827 will check key supports as well. Key support levels are seen around $1,818, $1,810, $1,802, $1,787, $1,776, $1,764, $1,758, $1,747, $1,740 and $1,720 mark respectively. Key resistances are seen at $1,848, $1,857, $1,862, $1,876, $1,882, $1,888, $1,894 and $1,902 marks respectively.
Take a look and do trade wisely!