A Short Term Outlook: XAU/USD (Gold); Aug 04, 2022
U.S. Trade Balance
Today’s U.S. session will remain light as U.S. will release Trade balance and unemployment Claims weekly data at 1230 GMT/1800 IST. The goods portion has a muted impact because it’s a duplicate of the Goods Trade Balance data released about 5 days earlier. A positive number indicates that more goods and services were exported than imported. Export demand and currency demand are directly linked because foreigners must buy the domestic currency to pay for the nation’s exports. Export demand also impacts production and prices at domestic manufacturers.
Let’s see how gold has reacted during the previous data release:
- Gold strengthens on Thursday and jumps back above $1,780 mark.
- The pair made intraday high at $1,783 and Low at $1,763 mark.
- A day chart is down and H1 chart with triple EMA suggests up trend for the time being.
- A sustained close above $1,787 on H1 chart requires for the upside rally.
- Alternatively, a consistent close below $1,767 on H1 chart will test further supports.
Take a look and do trade wisely!