Be Cautious as U.S. PMI Data May Bring $10 – $25 Volatility in Gold; Dec 16, 2020
U.S. Flash Manufacturing & Services PMI
U.S. will release PMI data around 1445 GMT/2015 IST. It’s 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. Above 50.0 reading indicates industry expansion, below indicates contraction.
Let’s see how Gold has reacted during the previous data release:
XAU/USD (Gold): Gold strengthens extremely and touches $1,865 mark in late European hours. Today pair made intraday high at $1,865 and low at $1,851 mark. A sustained close above $1,870 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 $1,810, $1,802, $1,787, $1,776, $1,764, $1,758, $1,747, $1,740 and $1,720 mark respectively. Key resistances are seen at $1,865, $1,876, $1,882, $1,888, $1,894 and $1,902 marks respectively.
Take a look and do trade wisely!