Key Global Headlines and U.S. Indicators to Keep in mind while Trading in Gold; Feb 28, 2022

Key U.S. Indicators to keep In Mind Whilre Trading in Gold During U.S. Session

Today U.S. will come up with the Goods Trade Balance data at 1330 GMT/1900 IST and Chicago PMI data at 1445 GMT/2015 IST. Trade in goods makes up about 75% of total trade, and therefore provides early insight into the Trade Balance data reported about 5 days later. A positive number indicates that more goods were exported than imported. 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.

While Chicago PMI is a leading indicator of economic health – businesses react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insight into the company’s view of the economy. It is derived via a survey of around 200 purchasing managers in Chicago which asks respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories.

Let’s see how Gold has reacted during the previous data release:

Jan Results:

Dec Results:

Key Headlines on Russia – Ukraine:

  • Talks between Ukraine and Russia have started at the Belarussian border, Ukrainian presidential advisor Mykhailo Podolyak told Reuters via text message on Monday – Reuters.
  • Russia is interested in coming to an agreement that is in the interests of both sides at talks with Ukraine, Russian negotiator Vladimir Medinsky said on Monday, as officials prepare to meet near the border – Reuters.
  • Russian forces seized two small cities in southeastern Ukraine and the area around a nuclear power plant, the Interfax news agency said on Monday, but ran into stiff resistance elsewhere as Moscow’s diplomatic and economic isolation deepened – Reuters.

Technical View:

XAU/USD (Gold):

  • The Gold remains highly volatile on Monday and currenly stabilises above $1,900 mark.
  • Today pair made intraday high at $1,927 and low at $1,893 mark.
  • A day chart is up and H1 chart with triple EMA suggests down trend for the time being.
  • A sustained close above $1,921 on H1 chart requires for the upside rally.
  • Alternatively, a consistent close below $1,884 on H1 will check further supports.
$1,884 $1,915
$1,876 $1,922
$1,872 $1,930
$1,864 $1,937
$1,857 $1,943

Take a look and do trade wisely!
Good Luck