Gold Spikes Down Sharply Ahead of U.S. ISM Manufacturing PMI Results, $11+ Volatility Likely; March 01, 2021
U.S. ISM Manufacturing PMI Data
Today U.S. has scheduled to release ISM manufacturing PMI results at 1500 GMT/2030 IST. It’s a leading indicator of economic health – businesses react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insight into the company’s view of the economy. This data is derived via a survey of about 300 purchasing managers which asks respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries and inventories. The actual reading above 50.0 indicates industry expansion, below indicates contraction.
Let’s see how Gold has reacted during the previous data release:
XAU/USD: Gold touches $1,759 in European hours but fails to find support around it and currently hovers around $1,740 mark. The pair made intraday high at $1,759 mark and low at $1,732 mark. A triple EMA on a day and H1 chart confirm the bearish trend for the time being. A sustained close above $1,761 on H1 chart requires for the upside rally. Alternatively, a consistent close below $1,738 on H1 will check key supports too.
Key Resistances: $1,761, $1,772, $1,776, $1,782, $1,787
Key Supports: $1,738, $1,732, $1,726, $1,718, $1,710
Take a look and do trade wisely!