Key U.S. Indicators to Keep in Mind while Trading in Gold during U.S. Session; May 17, 2022
Key U.S. Indicators to Keep in Mind while Trading in Gold during U.S. Session
Today U.S. has scheduled to release Retail and Core Retail sales data at 1230 GMT/1800 IST and thereafter U.S. Industrial Production data at 1315 GMT/1845 IST. Later in U.S. Session, Fed Chair Powell is due to speak (1800 GMT/2330 IST) about inflation at Wall Street Journal’s Future of Everything Festival, in New York. Audience questions expected.
Retail sale is the primary gauge of consumer spending, which accounts for the majority of overall economic activity. Automobile sales account for about 20% of Retail Sales, but they tend to be very volatile and distort the underlying trend. The Core data is therefore thought to be a better gauge of spending trends. On the other end, Industrial Production is a leading indicator of economic health – production reacts quickly to ups and downs in the business cycle and is correlated with consumer conditions such as employment levels and earnings.
Let’s see how gold has reacted during the previous data release:
- Gold exhibits range bound movement and consolidates around $1,830 mark.
- Today pair made intraday high at $1,830 and low at $1,821 mark.
- A day chart is down and H1 chart with triple EMA suggest up trend for the time being.
- A sustained close above $1,830 on H1 chart requires for the upside rally.
- Alternatively, a consistent close below $1,822 on H1 chart will test further supports.
Take a look and do trade wisely!