Key Fundamentals of the U.S. Session: From Prelim GDP q/q to Pending Home Sales Data; May 26, 2022
Key U.S. Fundamental to Keep in Mind While Trading in Gold during U.S. session:
Today U.S. has scheduled to release Prelim GDP q/q data at 1230 GMT/1800 IST and Pending Home Sales data at 1400 GMT/1930 IST.
Prelim GDP is the broadest measure of economic activity and the primary gauge of the economy’s health. There are 3 versions of GDP released a month apart – Advance, Preliminary, and Final. The Advance release is the earliest and thus tends to have the most impact.
Let’s see how gold has reacted during the previous data release:
U.S. Pending Home Sales:
It’s a leading indicator of economic health because the sale of a home triggers a wide-reaching ripple effect. For example, renovations are done by the new owners, a mortgage is sold by the financing bank, and brokers are paid to execute the transaction. This data is released about a week later than Existing Home Sales, but it’s more forward-looking as a contract is signed several weeks before the home is counted as sold.
- Gold exhibits range bound movement and remains well supported above $1,842 mark.
- Today pair made intraday high at $1,854 and low at $1,842 mark.
- A day chart and H1 chart with triple EMA suggests up trend for the time being.
- A sustained close above $1,858 on H1 chart requires for the upside rally.
- Alternatively, a consistent close below $1,842 on H1 chart will test further supports.
Take a look and do trade wisely!