Be Cautious Ahead of U.S. Key Economic Indicators, $18+ Volatility Likely in Gold; April 30, 2021
U.S. Personal Income & Spending Data
Today U.S. will release Personal Income & Spending data around 1230 GMT/1800 IST. After that U.S. will come up with its revised UoM Consumer Sentiment Data. Income is correlated with spending – the more disposable income consumers have, the more likely they are to increase spending. Consumer spending accounts for a majority of overall economic activity. It’s one of the most important gauges of economic health due to the vast ripple effect consumer buying creates in the economy. In addition, financial confidence is a leading indicator of consumer spending, which accounts for a majority of overall economic activity. Here, a survey of about 500 consumers is taken, which asks respondents to rate the relative level of current and future economic conditions. If the actual results come 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 enjoys roller coaster movement ahead of key U.S. indicators. The pair made intraday high at $1,773 and low at $1,765 mark. A day chart is bullish while H1 chart suggests bearish trend for the time being. A sustained close above $1,774 on H1 requires for the upside rally. Alternatively, a consistent close below $1,764 will check further supports.
Key Resistances: $1,778, $1,782, $1,789, $1,794, $1,799, $1,805
Key Supports: $1,762, $1,758, $1,754, $1,748, $1,742, $1,737
Take a look and do trade wisely!