Gold Hits Fresh 6 – Week low at $1,780 mark, Key U.S. Economic Indicators in Focus; Jan 28, 2022

Key U.S. Indicators to keep in mind while trading in Gold during U.S. session

Today U.S. will release Personal Income, Personal Spending and Core PCE Price Index data at 1330 GMT/1900 IST.

Core PCE Prise Index differs from Core CPI in that it only measures goods and services targeted towards and consumed by individuals. Prices are weighted according to total expenditure per item which gives important insights into consumer spending behavior. This is rumored to be the Federal Reserve’s favorite inflation measure, but CPI is released about 10 days earlier and tends to garner most of the attention. On the other side, Income is correlated with spending – the more disposable income consumers have, the more likely they are to increase spending.

Thereafter, U.S. will release Revised UoM Consuemr Sentiment data at 1500 GMT/2030 IST. It is derived via a survey of about 500 consumers which asks respondents to rate the relative level of current and future economic conditions.

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

Decc 23:

Nov 24:

Technical View:

XAU/USD (Gold):

  • The Gold depreciated sharply and hits fresh 6 week low at $1,780 mark.
  • Today pair made intraday high at $1,799 and low at $1,780 mark.
  • A day chart is up and H1 chart with triple EMA suggests down trend for the time being.
  • A sustained close above $1,802 on H1 chart requires for the upside rally.
  • Alternatively, a consistent close below $1,781 on H1 will check further supports.
$1,778 $1,802
$1,772 $1,808
$1,767 $1,814
$1,762 $1,820
$1,757 $1,826

Take a look and do trade wisely!
Good Luck