Gold Hovers Around $1,740 mark Ahead of U.S. Trade Balance Data, $8+ Volatility Likely; April 07, 2021

U.S. Trade Balance

Today’s U.S. Session will be important as U.S. will release Trade balance data (1230 GMT) and FOMC Meeting Minutes (1800 GMT). Let’s start first with U.S. Trade Balance Data.

In the Trade balance data, 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:

March 05:

Feb 05:

Note: Important to note here that U.S. has released Trade Balance data along with the NFP job data and that is the reason for the mixed market movement had seen during the past data release. Today no other U.S. data has scheduled to release along with Trade Balance data. According to the Actual Trade Balance data, U.S. will give movement against the major peers.

Technical View:

XAU/USD (Gold):Gold trades marginally lower on Wednesday and hovers around $1,740 mark. The pair made intraday high at $1,744 and low at $1,735 mark. A day chart with triple EMA confirms bearish trend while H1 chart suggests up trend for the time being. A sustained close above $1,745 on H1 chart requires for the upside rally. Alternatively, current downside movement will drag the parity down below $1,732 mark.

Key Resistances: $1,748, $1,754, $1,762, $1,768, $1,772

Key Supports: $1,732, $1,727, $1,721, $1,715, $1,708

Take a look and do trade wisely!
Good Luck