Gold Soars on News of Oil Supply Cut by Saudi Nations, U.S. Personal Income & Spending Data in Focus; Jan 29, 2021
U.S. Personal Income & Spending Data
Today’s U.S. session will be hectic as U.S. has scheduled to release many key economic indicators. Here I am briefing you out about the Personal Income & Spending data. Income is correlated with spending – the more disposable income consumers have, the more likely they are to increase spending. On the other hand, consumer spending accounts for a majority of overall economic activity. It’s one of the most important gauges of economic health due to the vast ripple effect consumer buying creates in the economy.
Let’s see how Gold has reacted during the previous data release:
XAU/USD (Gold): Gold spikes up in early U.S. session and touched $1,866 mark. All the U.S. markets are set to open lower, just following the Asian and European market trend.
One of the key reasons to high volatility in Gold is cut in oil supply by Saudi Arabia on concern over new corona virus variants and shortage of Covid vaccine worldwide. Saudi Arabia is set to cut oil output by 1 million barrels per day (bpd) in February and March.
A sustained close above $1,862 on a Day chart will test key resistances. Alternatively, reversal from key resistance will drag the parity back below $1,850 mark.
Key Resistances: $1,867, $1,872, $1,884, $1,892, $1,904
Key Supports: $1,854, $1,847, $1,840, $1,832, $1,827
Take a look and do trade wisely!