Be Watchful as U.S. Industrial Production Data Gives $10+ Movement in Gold, Fed Chair Powell’s Speech in Focus; Nov 17, 2020
U.S. Industrial Production & Capacity Utilization Rate/strong>
U.S. will publish key economic data around 1415 GMT/1945 IST. It’s a leading indicator of consumer inflation – when producers are nearing full capacity they respond by raising prices and the higher costs are usually passed on to the consumer. Industrial production is 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.
Let’s see how Gold has reacted during the previous data release:
XAU/USD (Gold): Gold moves in stiff boundaries ahead of U.S. Retail Sales, Industrial Production as well as Fed Chair Powell’s speech (1800 GMT/2330 IST). Today pair made intraday high at $1,892 and low at $1,884 mark. A sustained close above $1,902 requires for the upside rally. On the other side, consistent close below $1,861 will check key supports as well. Key support levels are seen around $1,857, $1,849, $1,840, $1,822, $1,809 and $1,787 mark respectively. Key resistances are seen at $1,892, $1,902, $1,917, $1,922, $1,940, $1,947, $1,967, $1,974, $1,982, $1,991, $1,999 and $2,000 marks respectively.
Take a look and do trade wisely!