Gold Depreciates Ahead of U.S. Richmond manufacturing Index, $9+ Movement likely; June 22, 2021
U.S. Richmond Manufacturing Index
Today’s U.S. session will be important as U.S. will release Richmond Manufacturing Index data along with the existing home sales data at 1230 GMT/1800 IST. Richmond Manufacturing Index data is derived via a survey of about 55 manufacturers in the Richmond area which asks respondents to rate the relative level of business conditions including shipments, new orders and employment. Here Above 0 indicates improving conditions, below indicates worsening conditions. While Existing Home sales is a leading indicator of economic health because the sale of a home triggers a wide-reaching ripple effect. For example, renovations are done by the new owners, a mortgage is sold by the financing bank, and brokers are paid to execute the transaction.
Let’s see how Gold has reacted during the previous data release:
- Gold weakens sharply ahead of U.S. session and touches $1,876 mark in European hours.
- The pair made intraday high at $1,790 and low at $1,776 mark.
- A day chart and H1 chart with triple EMA suggests bearish trend for the time being.
- A sustained close above $1,790 requires for the upside rally.
- Alternatively, a consistent close below $1,772 will check further supports.
Take a look and do trade wisely!