U.S. Industrial production Data May Give Opportunity To Grab $10 Volatility In Gold
U.S. Industrial Production & Capacity Utilization Rate
U.S. will release industrial production data along with the capacity utilization rate at 1315 GMT/1845 IST. 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. On the other side, capacity utilization rate is a leading indicator of consumer inflation – when producers are nearing full capacity they respond by raising prices and the higher costs are usually passed on to the consumer. If Actual data from both the indicators come higher than expected, it will be positive for U.S. dollar.
Let’s see how Gold has reacted during the previous data release:
XAU/USD (GOLD): Gold touches $1,972 mark in late European hours. Today pair made intraday high at $1,972 and low at $1,955 mark. A sustained close above $2,001 requires for the upside rally. Alternatively, reversal from key resistance will take the parity down towards key supports around $1,947, $1,940, $1,932, $1,922, $1,910, $1,902, $1,890 and $1,862 mark respectively. Key resistances are seen at $1,972, $1,981, $1,994, $2,008, 2,020, 2,038 and $2,063 marks respectively.
Take a look and do trade wisely!