Gold Back Above $1,730 mark, U.S. Industrial Production Data in Focus; March 16, 2021
U.S. Industrial Production Results
Just after the U.S. Retail Sales Data, U.S. has scheduled to release Industrial Production as well as Capacity Utilization Rate results at 1315 GMT/1845 IST. 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. On the other hand, Capacity Utilization rate is 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.
Let’s see how Gold has reacted during the previous data release:
XAU/USD (Gold): Gold recovers sharply from previous losses and stabilizes above $1,730 mark. The pair made intraday high at $1,737 and low at $1,726 mark. Here a day chart with triple EMA is bearish for the long run while H1 chart signals the bullish trend for the short run. A sustained close above $1,738 on a day chart requires for the upside rally. Alternatively, reversal from here will drag the parity down below $1,720 mark.
Key Resistances: $1,740, $1,748, $1,754, $1,762, $1,767
Key Supports: $1,722, $1,715, $1,708, $1,702, $1.691
Take a look and do trade wisely!