Be Watchful Ahead of U.S. Session, A Key Indicator likely to Bring High Volatility in Gold; Feb 01, 2021
U.S. ISM Manufacturing PMI
U.S. will release ISM manufacturing PMI data at 1500 GMT/2030 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 a survey of about 300 purchasing managers which asks respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries and inventories.
Let’s see how Gold has reacted during the previous data release:
XAU/USD (Gold): Gold starts a new week on a positive note and touches $1,871 mark in European hours. A sustained close of a Day candle above $1,871 requires for the upside rally. Alternatively, reversal from key resistance will check key supports too. In addition, EMA still signals down side trend in short run. Let’s wait for the key economic results and market movement to decide the further direction of Gold.
Key Resistances: $1,872, $1,876, $1,884, $1,892, $1,901
Key Supports: $1,847, $1,840, $1,832, $1,820, $1,807
Take a look and do trade wisely!