Gold Remains Well Supported Below $1,850 mark ahead of U.S. CPI, Prelim UoM Consumer Sentiment Data; $20+ Volatility Likely in Gold; June 10, 2022
What to Expect from Gold during U.S. Session:
Today the key event from U.S. will be CPI as well as Core CPI data scheduled at 1230 GMT/1800 IST and thereafter U.S. Prelim UoM Consumer Sentiment data at 1400 GMT/1930 IST. Consumer prices account for a majority of overall inflation. Inflation is important to currency valuation because rising prices lead the Central Bank to raise interest rates out of respect for their inflation containment mandate. Here the average price of various goods and services are sampled and then compared to the previous sampling.
In addition, Prelim UoM Consumer Sentiment data is a leading indicator of consumer spending, which accounts for a majority of overall economic activity. 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:
- Gold trades marginally lower on Friday and hovers around key support at $1,842 mark.
- The pair made intraday high at $1,848 and Low at $1,842 mark.
- A day chart and H1 chart with triple EMA suggest down trend for the time being.
- A sustained close above $1,848 on H1 chart requires for the upside rally.
- Alternatively, a consistent close below $1,842 on H1 chart will test further supports.
Take a look and do trade wisely!