Key U.S. Indicators to Keep in Mind While Trading in Gold during U.S. Session; May 19, 2022
Key U.S. Indicators to Keep in Mind While Trading in Gold during U.S. Session
Today U.S. has scheduled to release Philly Fed Manufacturing Index data at 1230 GMT/1800 IST and Existing Home Sales data at 1400 GMT/1930 IST. Philly Fed Manufacturing Index is is a leading indicator of economic health – businesses react quickly to market conditions, and changes in their sentiment can be an early signal of future economic activity such as spending, hiring, and investment. It is derived via a survey of about 250 manufacturers in the Philadelphia Federal Reserve district which asks respondents to rate the relative level of general business conditions.
While Existing Home Sales data is 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:
- Gold spikes up sharply on Thursday and touches $1,830 mark.
- Today pair made intraday high at $1,830 and low at $1,810 mark.
- A day chart is down and H1 chart with triple EMA suggests up trend for the time being.
- A sustained close above $1,832 on H1 chart requires for the upside rally.
- Alternatively, a consistent close below $1,812 on H1 chart will test further supports.
Take a look and do trade wisely!