Be Watchful Ahead of U.S. NFP Job Data & Factory Orders, $15+ Volatility likely in Gold; June 04, 2021
Be Watchful Ahead of U.S. Session, $15+ Volatility likely in Gold; June 04, 2021
Today’s U.S. session will be most awaited as U.S. will release NFP Job Data and unemployment rate at 1230 GMT/1800 IST. Just after that U.S. will come up with the Factory Orders data at 1400 GMT/1930 IST. Let’s take a look on both the events one by one and try to figure it out the most likely direction for the Gold.
U.S. NFP Employment Change:
Job creation is an important leading indicator of consumer spending, which accounts for a majority of overall economic activity. This is vital economic data released shortly after the month ends. The combination of importance and earliness makes for hefty market impacts. The unemployment Rate is generally viewed as a lagging indicator, the number of unemployed people is an important signal of overall economic health because consumer spending is highly correlated with labor-market conditions. Unemployment is also a major consideration for those steering the country’s monetary policy.
U.S. Factory Orders:
This report contains a revision of the Durable Goods Orders data released about a week earlier, and fresh data regarding non-durable goods. It’s a leading indicator of production – rising purchase orders signal that manufacturers will increase activity as they work to fill the orders.
XAU/USD (Gold): Gold moves in rigid boundaries and consolidates around $1,870 mark. The pair made intraday high at $1,875 and low at $1,856 mark. A day chart suggests up trend but H1 chart suggests bearish trend for the time being. A sustained close above $1,874 on H1 chart requires for the upside rally. Alternatively, a consistent close below $1,858 on H1 chart will check further supports.
Key Resistances: $1,882, $1,889, $1,896, $1,902, $1,908
Key Supports: $1,856, $1,848, $1,842, $1,837, $1,831
Take a look and do trade wisely!