Capture $10 Volatility In Gold During U.S. Fundamentals
U.S. ISM Non – Manufacturing PMI Data
Today U.S. session will remains bit busy in U.S.’s economic data. U.S. will release trade balance as well as weekly unemployment claims data around 1230 GMT/0600 IST. After that at 1400 GMT/1930 IST, U.S. will release ISM non – manufacturing data too. Here I am giving brief notes on ISM non – manufacturing PMI data only. It is derived from 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. 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 time market has expected slightly lower reading around 57.0 against 58.1 previous released. If actual reading comes higher than 57 then it will be good for U.S. dollar. Important to note here that since last 8 months, U.S. has released this data with positive numbers only.
Let’s see how gold has reacted during the previous data release:
XAU/USD (GOLD): Gold trades marginally lower ahead of U.S. ISM non – manufacturing PMI data and stabilizes below $1,950 mark on Thursday. Today pair made intraday high at $1,950 and low at $1,927 mark. A sustained close above $2,001 requires for the upside rally. Alternatively, reversal from key resistance will take the parity down towards key supports around $1,922, $1,910, $1,902, $1,890, $1,862, $1,840, $1,822, $1,809 and $1,787 mark respectively. Key resistances are seen at $1,970, $1,982, $1,994, $2,008, 2,020, 2,038 and $2,063 marks respectively.
Take a look and do trade wisely!