Gold Slips below $1,870 mark ahead of U.S. Key Economic data, $8+ Volatility Likely; May 20, 2021
U.S. Philly Fed Manufacturing Index Data
Today’s U.S. session will remain light but important one as U.S. will release Philly Fed Manufacturing Index data along with unemployment claims weekly data at 1230 GMT/1800 IST. It’s a leading indicator of economic health – businesses react quickly to market conditions, and changes in their sentiment can be an early signal of future economic activity such as spending, hiring, and investment. This data is derived via a survey of about 250 manufacturers in the Philadelphia Federal Reserve district which asks respondents to rate the relative level of general business conditions.
Let’s see how gold has reacted during the previous data release:
XAU/USD (GOLD): Gold remains volatile on Thursday and stabilizes below $1,870 mark. The pair made intraday high at $1,879 and low at $1,863 mark. A day chart is up but H1 chart with triple EMA confirms the downtrend for the time being. A sustained close above $1,875 on H1 chart requires for the upside rally. Alternatively, a consistent close below $1,862 will check further supports too.
Key Resistances: $1,882, $1,890, $1,897, $1,804, $1,810
Key Supports: $1,862, $1,855, $1,848, $1,842, $1,837
Take a look and do trade wisely!