Gold Remains Highly volatile as U.S. ADP Job Data Misses Expectations, Markets eye U.S. ISM Services PMI Data; May 05, 2021
U.S. ISM Services PMI Data
U.S. will release another key economic indicator at 1400 GMT/1930 IST. It’s a leading indicator of economic health – businesses react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insight into the company’s view of the economy. This data is derived via a survey of about 300 purchasing managers which asks respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories. Above 50.0 indicates industry expansion, below indicates contraction.
Let’s see how Gold has reacted during the previous data release:
XAU/USD (Gold): Gold spiked down sharply and touched $1,770 mark despite lower than expected U.S. ADP Job Results. Here, pair fails to find support around $1,770 mark and jumps back above $1,780 mark.
A day chart is confirming Up Trend while H1 chart with triple EMA suggests down trend 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!