Be Watchful Ahead of U.S. Session, U.S.’s ISM Manufacturing PMI Data Likely to Bring High Volatility in to Gold; July 01, 2021

U.S. ISM Manufacturing PMI Results

Today U.S. will release Unemployment Claims Weekly data at 1230 GMT/1800 IST, Final Manufacturing PMI results at 1345 GMT/1915 IST and ISM Manufacturing PMI Results at 1400 GMT/1930 IST.

Here we will study the past movement of Gold during ISM Services PMI data only. 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:

June 01:

May 03:

Technical View:

XAU/USD (Gold):

  • Gold remains volatile ahead of ISM manufacturing PMI data.
  • Today pair made intraday high at $1,779 and low $1,765 mark.
  • A day chart is bearish for long term but H1 chart with triple EMA suggests up trend for the time being.
  • A sustained close above $1,778 on H1 chart requires for the upside rally.
  • Alternatively, a consistent close below $1,774 will check further supports.
SUPPORTS RESISTANCES
$1,772 $1,778
$1,765 $1,784
$1,761 $1,789
$1,757 $1,794
$1,752 $1,799

 

Take a look and do trade wisely!
Good Luck