Gold Weakens Sharply Ahead of U.S. Key Fundamental Indicators, $12+ Volatility Likely; March 26, 2021
U.S. Personal Income & Spending Results
Today U.S. has scheduled to release Personal Income, Personal Spending results and goods trade balance data at 1230 GMT/1800 IST. Income is correlated with spending – the more disposable income consumers have, the more likely they are to increase spending. 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.
Let’s see how Gold has reacted during the previous data release:
XAU/USD (Gold): Gold Spikes down sharply ahead of U.S.’s key economic Indicators and touches $1,721 mark. The pair made intraday high at $1,732 mark. A day chart and H1 chart with triple EMA confirm down trend for the time being. A sustained close below $1,722 on H1 chart requires for the downside rally. Alternatively, reversal from key support will drag the parity up above $1,730 mark.
Key Resistances: $1,732, $1,738, $1,742, $1,748, $1,754
Key Supports: $1,722, $1,715, $1,708, $1,702, $1,694
Take a look and do trade wisely!