Gold Remains Highly Volatile Ahead of U.S. Trade Balance and Factory Orders Results, $11+ Volatility Likely During Fundamental News; Jan 06, 2022

Key U.S. Indicators To Keep In Mind While Trading Gold

Today U.S. has scheduled to release Trade balance data at 1330 GMT/1900 IST and Factory Orders data at 1500 GMT/2030 IST.

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.

Factory Orders are a leading indicator of production – rising purchase orders signal that manufacturers will increase activity as they work to fill the orders. ‘Actual’ greater than ‘Forecast’ is good for currency.

Let’s see how Gold has reacted during the previous data release:

December Results:

November Results:

Technical View:

XAU/USD (Gold):

  • The Gold remains highly volatile on Thursday after hawkish FOMC Meeting Minutes.
  • Today pair made intraday high at $1,811 and low at $1,793 mark.
  • A day chart is up and H1 chart with triple EMA suggests down trend for the time being.
  • A sustained close above $1,811 on H1 chart requires for the upside rally.
  • Alternatively, a consistent close below $1,794 will check further supports.
$1,792 $1,811
$1,786 $1,816
$1,781 $1,821
$1,776 $1,832
$1.3680 $1.3965

Take a look and do trade wisely!
Good Luck