U.S. Fundamentals to Keep in mind while trading in Gold; May 28, 2021
U.S. Fundamentals to Keep in mind while trading in Gold
Today’s U.S. session is important as U.S.’s Personal Income and Spending data are scheduled to release at 1230 GMT/1800 IST while U.S.’s Chicago PMI will come out at 1345 GMT/1915 IST. Income is correlated with spending – the more disposable income consumers have, the more likely they are to increase spending. On the other side, Consumer spending accounts for a majority of overall economic activity. It’s one of the most important gauges of economic health due to the vast ripple effect consumer buying creates in the economy. After that 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. Here a survey of around 200 purchasing managers in Chicago are taken and 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 release:
XAU/USD (Gold): Gold exhibits range bound movement ahead of U.S. key economic indicators. The pair made intraday high at $1,898 and low at $1,887 mark. A day chart is up while H1 chart with triple EMA suggests bearish trend for the time being. A sustained close above $1,902 on H1 chart requires for the upside rally. Alternatively, consistent close below $1,887 will check further supports too.
Key Resistances: $1,902, $1,909, $1,916, $1,925, $1,930
Key Supports: $1,887, $1,881, $1,876, $1,870, $1,864
Take a look and do trade wisely!