Gold Moves in Rigid Boundaries Ahead of U.S. Chicago PMI Results, $10+ Volatility Likely; Jan 31, 2022

U.S. Chicago PMI

Today U.S. will release Chicago PMI data 1445 GMT/2015 IST. 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. It is derived via a survey of around 200 purchasing managers in Chicago which asks respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories.

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

Dec 30:

Nov 30:

Technical View:

XAU/USD (Gold):

  • The Gold moves in rigid boundaries ahead of U.S. Chicago PMI results.
  • Today pair made intraday high at $1,793 and low at $1,785 mark.
  • A day chart is up and H1 chart with triple EMA suggests down trend for the time being.
  • A sustained close above $1,792 on H1 chart requires for the upside rally.
  • Alternatively, a consistent close below $1,781 on H1 will check further supports.
Supports Resistances
$1,781 $1,794
$1,776 $1,799
$1,772 $1,804
$1,767 $1,809
$1,762 $1,814

Take a look and do trade wisely!
Good Luck