U.S. Richmond Manufacturing Index
Today’s U.S. session will be important as U.S. will release Richmond Manufacturing Index data along with the existing home sales data at 1230 GMT/1800 IST. Richmond Manufacturing Index data is derived via a survey of about 55 manufacturers in the Richmond area which asks respondents to rate the relative level of business conditions including shipments, new orders and employment. Here Above 0 indicates improving conditions, below indicates worsening conditions. While Existing Home sales 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 weakens sharply ahead of U.S. session and touches $1,876 mark in European hours.
- The pair made intraday high at $1,790 and low at $1,776 mark.
- A day chart and H1 chart with triple EMA suggests bearish trend for the time being.
- A sustained close above $1,790 requires for the upside rally.
- Alternatively, a consistent close below $1,772 will check further supports.
Take a look and do trade wisely!