Heads Up for the US Services PMI – How to Trade Gold?
Arslan Butt • 1 min read
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!