U.S. Personal Income & Spending Data
The upcoming U.S. fundamental news may capture minimum $15 movement in gold and U.S. counterparts as well. U.S. is going to release personal income, spending and goods trade balance data at 1230 GMT/1800 IST. As more than 2 data are releasing together, therefore mixed data may give market volatility during that specific time frame. Consumer spending is one of the most important gauges of economic health due to the vast ripple effect consumer buying creates in the economy while Income is correlated with spending – the more disposable income consumers have, the more likely they are to increase spending. In addition, positive data of goods trade balance indicates that more goods were exported than imported.
Let’s see how gold has reacted during the previous data release:
XAU/USD (GOLD): Gold rises gradually against U.S. dollar and touched $1,960 mark in European hours. Gold remained highly volatile on the Day 1 of Jackson Hole Symposium. Today pair made intraday high at $1,960 and low at $1,923 mark. A sustained close above $1,954 requires for the upside rally. Alternatively, reversal from key resistance will take the parity down towards key supports around $1,922, $1,910, $1,902, $1,890, $1,862, $1,840, $1,822, $1,809 and $1,787 mark respectively. Key resistances are seen at $1,962, $1,978, $1,987, $1,994, $2,008, 2,020, 2,038 and $2,063 marks respectively.
Take a look and do trade wisely!