Gold Trades Slightly Up Ahead of Busy U.S. Session, $11+ Volatility Expected; Dec 23, 2020
U.S. Key Economic Indicators
Today’s U.S. session will be quite busy as so many key economic indicators will be coming out at 1330 GMT/1900 IST.
They are U.S. Durable goods & Core Durable goods orders, Personal Income & Spending data along with unemployment claims weekly data. In case of mixed economic data, U.S. dollar might face volatility during that particular time only.
U.S. Durable goods orders are leading indicator of production – rising purchase orders signal that manufacturers will increase activity as they work to fill the orders.
On the other side, consumer spending accounts for a majority of overall economic activity. It’s one of the most important gauges of economic health due to the vast ripple effect consumer buying creates in the economy. Income is correlated with spending – the more disposable income consumers have, the more likely they are to increase spending.
Lastly, weekly unemployment claims too will put major impact on market movement.
Let’s see how Gold has reacted during the previous data release:
XAU/USD (Gold): Gold trades marginally higher on Wednesday and touches $1,872 mark in European hours. Today pair made intraday high at $1,872 and low at $1,860 mark. A sustained close above $1,860 requires for the upside rally. On the other side, consistent close below $1,860 will check key supports as well. Key support levels are seen around $1,855, $1,847, $1,832, $1,827, $1,820, $1,812, $1,802 and $1,787 mark respectively. Key resistances are seen at $1.872, $1,885, $1,905, $1,912, $1,924 and $1,937 marks respectively.
Take a look and do trade wisely!