Be Cautious Ahead of U.S. Session, U.S. Key Fundamentals May Bring $25+ Volatility in Gold; March 04, 2021
U.S. Factory Orders
Markets eye U.S. Revised Nonfarm productivity data (1330 GMT), U.S. factory orders data (1500 GMT) and Fed Chair Powell’s speech (1705 GMT) to predict the future directions of the U.S. dollar. Fed Chair is due to speak about the U.S. economy at an online event hosted by the Wall Street Journal. Audience questions are expected and thus some volatility is expected during the event.
On the other side, Factory Orders are the leading indicator of production – rising purchase orders signal that manufacturers will increase activity as they work to fill the orders. This report contains a revision of the Durable Goods Orders data released about a week earlier and fresh data regarding non-durable goods. If the actual data comes higher than expected, it will be good for U.S. dollar.
Let’s see how Gold has reacted during the previous data release:
XAU/USD (Gold): Gold moves in stiff boundaries ahead of key U.S. fundamentals. The pair made intraday high at $1,721 and low at $1,706 mark. As you can see in the charts, such fundamentals had given extreme volatility in the past. A day as well as H1 chart still confirms the bearish trend for the time being. The expected range for the parity will be $1,722 to $1,708 mark. A sustained close of either side on H1 chart requires to confirm further directions of the parity.
Key Resistances: $1,722, $1,727, $1,732, $1,740, $1,748
Key Supports: $1,698, $1,692, $1,685, $1,677, $1,670
Take a look and do trade wisely!