Gold Spiked down sharply ahead of U.S. Retail Sales Data, $9+ Movement likely; July 16, 2021
U.S. Retail Sales and UoM Consumer Sentiment Data
Today U.S. will release Retail sales data at 1230 GMT/1800 IST and Prelim UoM Consumer Sentiment data at 1400 GMT/1930 IST. Retail sales are the primary gauge of consumer spending, which accounts for the majority of overall economic activity. Automobile sales account for about 20% of Retail Sales, but they tend to be very volatile and distort the underlying trend. The Core data is therefore thought to be a better gauge of spending trends. Financial confidence is a leading indicator of consumer spending, which accounts for a majority of overall economic activity. Here surveys of about 500 consumers are taken 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:
- The gold trades marginally lower on Friday and hovers around $1,820 mark.
- The pair made intraday high at $1,832 and low at $1,821 mark.
- Currently, a day chart is bearish but H1 chart with triple EMA suggests bullish trend for the time being.
- A sustained close above $1,827 on H1 chart requires for the upside rally.
- Alternatively, a consistent close below $1,820 will check further supports.
Take a look and do trade wisely!