Heads Up for the US Services PMI – How to Trade Gold?
What’s up, traders.
The lull in the market is indicating a potential storm on the Non-farm payroll data tomorrow. Gold is also trading calmly within a narrow range, especially holding below 1,503 level. The bullish breakout of this level can extend buying until 1,509, but investors are waiting for a solid reason to exhibit a price action.
Well, the US Services PMI figure can be a reason to trigger price action and breakouts in the market. Recalling FX Leaders Daily Brief, the Institute for Supply Management is due to report non-manufacturing PMI figures. So far, US businesses in the non-manufacturing sector have been expanding at a modest pace and facing the headwinds that have beaten manufacturing.
The consensus estimate is 55.3, a number that bestows a robust rate of development though that would be down from August’s 56.4. Further weakness in the US services PMI can drive sharp buying in gold prices. As a result, we may see a violation of 1,503 resistance levels.
Conversely, the stronger economic figures can drive sharp sell-off in GOLD. Since economists are expecting 55.1, the actual release of 50 or below 50 can lead gold prices towards 1,509 and 1,514.
On the other hand, a stronger figure of 56 or above can trigger a sell-off in gold until 1,496.
Brace yourselves for the move, and stay tuned to FX Leaders for more forex trading signals!
ABOUT THE AUTHOR
See More
Sidebar rates
Related Posts
SaveAdd 3440
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals