Gold Spikes Down Sharply Ahead of U.S. Key Economic Indicators, $7+ Volatility Likely; Dec 29, 2021
Key U.S. indicators to Keep in Mind While Trading in Gold
Today U.S. will come up with the Goods trade Balance data at 1330 GMT/1900 IST and Pending Home Sales data at 1500 GMT/2030 IST. Trade in goods makes up about 75% of total trade, and therefore provides early insight into the Trade Balance data reported about 5 days later. A positive number indicates that more goods were exported than imported. In addition Export demand and currency demand are directly linked because foreigners must buy the domestic currency to pay for the nation’s exports. Export demand also impacts production and prices at domestic manufacturers.
On the other end, Pending Home Sales is a leading indicator of economic health because the sale of a home triggers a wide-reaching ripple effect. For example, renovations are done by the new owners, a mortgage is sold by the financing bank, and brokers are paid to execute the transaction.
Let’s see how Gold has reacted during the preivous data release:
- The Gold weakens sharply on Wednesday and touches $1,794 mark.
- Today pair made intraday high at $1,807 and low at $1,794 mark.
- A day chart is up and H1 chart with triple EMA suggests down trend for the time being.
- A sustained close above $1,810 on H1 chart requires for the upside rally.
- Alternatively, a consistent close below $1,794 will check further supports.
Take a look and do trade wisely!