Gold Trades Lower Ahead of U.S. PPI Results, $9+ Volatility Likely; April 09, 2021
U.S. PPI & Core PPI Results
Today U.S. has scheduled to release PPI as well as Core PPI data at 1230 GMT/1800 IST. It’s a leading indicator of consumer inflation – when producers charge more for goods and services the higher costs are usually passed on to the consumer. If the actual data comes higher than forecasted, it will be positive for U.S. dollar.
Let’s see how Gold has reacted during the previous data release:
XAU/USD (Gold): Gold weakens sharply ahead of U.S. PPI results and touches $1,743 mark in European hours. The pair made intraday high at $1,757 and low at $1,743 mark. A day chart with triple EMA confirms bearish trend while H1 chart suggests up trend for the time being. A sustained close above $1,757 on H1 chart requires for the upside rally. Alternatively, a consistent close below $1,742 will check further supports.
Key Resistances: $1,757, $1,762, $1,768, $1,772, $1,776
Key Supports: $1,742, $1,738, $1,732, $1,727, $1,721
Take a look and do trade wisely!