Key U.S. Indicators to Keep In Mind While Trading In Gold During U.S. Session; Aug 24, 2022

A Short Term Outlook: XAU/USD (Gold)

Today U.S. has scheduled to release U.S. Durable/Core Durable Goods Orders data at 1230 GMT/1800 IST and thereafter U.S. Pending Home Sales data at 1400 GMT/1930 IST. Durable Goods orders are a leading indicator of production – rising purchase orders signal that manufacturers will increase activity as they work to fill the orders. While Pending Home Sales are 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.

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

July 27:

June 27:

Technical View:

XAU/USD (Gold):

  • Gold erases previous gain against U.S. dollar and slips back below $1,750 mark.
  • The pair made intraday high at $1,753 and Low at $1,743 mark.
  • A day chart is down and H1 chart with triple EMA suggests up trend for the time being.
  • A sustained close above $1,752 on H1 chart requires for the upside rally.
  • Alternatively, a consistent close below $1,740 on H1 chart will test further supports.

Take a look and do trade wisely!
Good Luck