Gold Moves in Rigid Boundaries Ahead of U.S. ADP Job Data, $9+ Volatility Likely; May 05, 2021
U.S. ADP Job Results
The key event for the U.S. session will be U.S. ADP job results scheduled at 1215 GMT/1745 IST. Job creation is an important leading indicator of consumer spending, which accounts for a majority of overall economic activity. This data provides an early look at employment growth, usually 2 days ahead of the government-released employment data that it’s designed to mimic. 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:
Note: Despite Negative ADP Job Data, U.S. dollar strengthened sharply
Note: Despite Positive ADP Job Data, U.S. dollar gave upside movement
XAU/USD (Gold): Gold remains volatile on Wednesday ahead of U.S. ADP Job Results. The pair made intraday high at $1,783 and low at $1,774 mark. A day chart is confirming Up Trend while H1 chart with triple EMA suggests downtrend for the time being. A sustained close above $1,784 on H1 chart requires for the upside rally. Alternatively, consistent close below $1,775 will check further supports.
Key Resistances: $1,784, $1,789, $1,794, $1,799, $1,805
Key Supports: $1,774, $1,768, $1,762, $1,756, $1,752
Take a look and do trade wisely!