Gold Trades Slightly Up Ahead of Key U.S. Economic Results, $10+ Volatility Likely; June 24, 2021
U.S. Durable Goods Orders Results
Today’s U.S. session will be busy as U.S. is going to release many key economic indicators at the same time and they are U.S. Final GDP q/q, Unemployment claims weekly, Durable goods, Core Durable Goods and goods trade balance data. As all the data are releasing at the same time, the mixed data could bring market volatility in the U.S. dollar parity.
Durable goods orders is a leading indicator of production – rising purchase orders signal that manufacturers will increase activity as they work to fill the orders. Durable goods are defined as hard products having a life expectancy of more than 3 years, such as automobiles, computers, appliances, and airplanes. On the other side, 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.
Let’s see how gold has reacted during the previous data release:
- Gold rises gradually on Thursday and stabilizes above $1,780 mark.
- The pair made intraday high at $1,783 and low at $1,772 mark.
- A day chart and H1 chart with triple EMA suggests bearish trend for the time being.
- A sustained close above $1,784 on H1 requires for the upside rally.
- Alternatively, a consistent close below $1,772 will check further supports.
Take a look and do trade wisely!