Gold Remains Volatile Ahead of U.S. PPI Results, $9+ Movement Likely; May 13, 2021
U.S. PPI & Core PPI Data
U.S. is going to release PPI & Core PPI data at 1230 GMT/1800 IST. Along with it, U.S. will release unemployment claims weekly data. Producer price index is a leading indicator of consumer inflation – when producers charge more for goods and services the higher costs are usually passed on to the consumer. If the Actual reading is greater than forecasted, it will be good for U.S. dollar.
Let’s see how Gold has reacted during the previous data release:
XAU/USD: Gold remains volatile ahead of U.S. PPI data. The pair made intraday high at $1,823 and low at $1,808 mark. A day chart suggests bullish trend while H1 chart suggests bearish trend in short run. A sustained close above $1,822 on H1 chart test key resistances. Alternatively, reversal from here will drag the parity down below $1,800 mark.
Key Resistances: $1,822, $1,828, $1,832, $1,838, $1,842
Key Supports: $1,808, $1,802, $1,797, $1,792, $1,787
Take a look and do trade wisely!