Gold Strengthens Sharply Ahead of U.S. Key Economic Data, $15+ Volatility Likely in Gold; May 21, 2021
U.S. Flash Manufacturing PMI & Services PMI Data
Today U.S. will release key economic data at 1345 GMT/1915 IST. Manufacturing PMI data is 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 800 purchasing managers which asks respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories. While Services PMI data is derived via a survey of about 400 purchasing managers which asks respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories. The above 50.0 indicates the industry expansion, below indicates contraction.
Let’s see how gold has reacted during the previous data release:
XAU/USD (GOLD): Gold rises sharply ahead of U.S. Flash Manufacturing and Services PMI data. The pair made intraday high at $1,880 and low at $1,870 mark. A day chart and H1 chart with triple EMA confirms the bullish trend for the time being. A sustained close above $1,882 on H1 chart requires for the upside rally. Alternatively, a consistent close below $1,870 will check further supports too.
Key Resistances: $1,884, $1,889, $1,894, $1,899, $1,905
Key Supports: $1,862, $1,855, $1,848, $1,842, $1,837
Take a look and do trade wisely!