Gold Exhibits Range Bound Movement Ahead of U.S. NFP Job Data, $12+ Volatility Likely; March 05, 2021
U.S. Non Farm Employment Change
The key event for the day will be U.S. NFP job results and unemployment rate. 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. If the actual data comes greater than expected, it will be good for U.S. dollar. On the other side, unemployment rate should be lower than expected to make the U.S. dollar stronger.
Let’s see how Gold has reacted during the previous data release:
XAU/USD (Gold): Gold moves in rigid boundaries ahead of key U.S. NFP Job data. The pair made intraday high at $1,700 and low at $1,687 mark. A day as well as H1 chart confirms the bearish trend for the time being. A sustained close above $1,712 on H1 chart requires for the upside rally. Alternatively, a consistent close below $1,690 on H1 chart will check further supports.
Key Resistances: $1,702, $1,708, $1,712, $1,718, $1,722
Key Supports: $1,687, $1,677, $1,670, $1,661, $1,645
Take a look and do trade wisely!