Let’s Plan Your Gold Trading During U.S. Session:U.S. Retail Sales & FOMC Meeting On Its Way; March 16, 2022

Let’s Plan Your Gold Trading During U.S. Session:U.S. Retail Sales & FOMC Meeting On Its Way
Today U.S. has scheduled to release Retail Sales & Core Retail Sales data at 1230 GMT/1800 IST. It’s 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.
Let’s see how Gold has reacted during the previous data release:
Feb 16:
Jan 14:
U.S. FOMC Interest Rate Decision:
- Fed is going to hike interest rate for the first time since 2018.
- 25BP hike in interest rate is widely anticipated today and 150BP tightening througout the year.
- U.S. assets from the dollar to stocks and bond yields are rising across the board ahead of FOMC Meeting.
- Traders eye how the Fed sees inflation and growth in quarters ahead?
- The Central bank releases its economic projections generally four times a year.
- Fed likely to revise CPI data upward but GDP forecast likely to be revised downwards.
- Fed’s unemployment rate may remain unchanged for the time being.
- Fed Chair Powell is conducting Press Conference at 1830 GMT, Investors put focus on his guidance and how much clarity he gives on the Central Bank’s policy direction.
- If Powell remains hawkish, U.S. dollar likely to strengthen against major peers.
- On the other end, if there is any unwillingness in his speech, the U.S. dollar could sink quickly and aggressively.
Technical View:
XAU/USD (GOLD):
- Gold exhibits range bound movement ahead of U.S. FOMC Meeting due today at 1800 GMT and remains well supported around $1,920 mark.
- Today pair made intraday high at $1,924 and low at $1,911 mark.
- A triple EMA on a day chart is up and H1 chart suggests down trend for the time being.
- A sustained close above $1,924 on H1 chart requires for the upside rally.
- Alternatively, a consistent close below $1,911 will check further supports. Traders eye U.S. FOMC Meeting due tomorrow.
Supports
|
Resistances
|
$1,911
|
$1,924
|
$1,906
|
$1,930
|
$1,898
|
$1,936
|
$1,891
|
$1,942
|
$1,886
|
$1,948
|
Take a look and do trade wisely!
Good Luck

TP Global FX Research Team
With a decade of Forex Market insight, TP Global FX Research Team delivers you the Market Insight that boosts your Trading Skills