Be Cautious Ahead of U.S. Session, U.S. PMI Indicators May Create High Volatility in Gold; Jan 22, 2021
U.S. Flash PMI Data
U.S. will release manufacturing PMI as well as services PMI data around 1445 GMT/2015 IST. Manufacturing PMI is a leading indicator of economic health – businesses react quickly to market conditions and their purchasing managers hold perhaps the most current and relevant insight into the company’s view of the economy. This data is derived via survey of about 800 purchasing managers which asks respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries and inventories. If the actual data comes above 50.0, it indicates industry expansion and below indicates contraction.
Let’s see how Gold has reacted during the previous data release:
XAU/USD: Gold weakens on Friday and remains well supported below $1,870 mark. Pair faces key hurdle at $1,872 mark, sustained close above requires for the upside rally. Alternatively, a consistent close below $1,855 will test the key supports.
Key Resistances: $1,876, $1,885, $1,894, $1,902
Key Supports: $1,857, $1,848, $1,840, $1,832
Take a look and do trade wisely!