Be Watchful As Oct 16 Will be Eventful U.S. Trading Session; $15+ Volatility is Expected in Gold

U.S. High Impact Economic Indicators

Today as on Oct 16, 2020 U.S. session will remain hectic as U.S. is going to release various economic data starting from 1230 GMT onwards. Firstly U.S. will release Retail sales & core retail sales data around 1230 GMT/1800 IST followed by industrial production and capacity utilization rate at 1315 GMT/1845 IST. In addition, U.S. will release Prelim UoM consumer sentiment data round 1400 GMT/1930 IST. The above mentioned all the data will give hint regarding the future direction of the U.S. dollar.

Let’s see how Gold has reacted during the previous data release:

A. Retail Sales & Core Retail Sales

It’s the primary gauge of consumer spending, which accounts for the majority of overall economic activity.

Sept 16: Negative Data

Aug 14: Mixed Data (Negative Retail Sales & Positive Core Retail Sales)

B. Industrial Production & Capacity Utilization Rate

It’s a leading indicator of economic health – production reacts quickly to ups and downs in the business cycle and is correlated with consumer conditions such as employment levels and earnings.

Sept 15: Negative Data

Aug 14: Mixed Data (Negative Industrial Production & Positive capacity utilization)

C. UoM Consumer Sentiment

Financial confidence is a leading indicator of consumer spending, which accounts for a majority of overall economic activity. This data is derived via survey of about 500 consumers which asks respondents to rate the relative level of current and future economic conditions.

Sept 18: Positive Data

Aug 14: Positive Data

Technical View:

XAU/USD: Gold rises gradually on Friday ahead of various economic data. Today pair made intraday high at $1,912 and low at $1,902 mark. A sustained close above $1,908 requires for the upside rally. On the other side, consistent close below $1,891 will check key supports as well. Key support levels are seen around $1,902, $1891, $1,882, $1,876, $1,864, $1,857, $$1,849, $1,840, $1,822, $1,809 and $1,787 mark respectively. Key resistances are seen at $1,912, $1,918, $1,922, $1,932, $1,940, $1,947, $1,957 and $1,972 marks respectively.

Take a look and do trade wisely!
Good Luck