Gold Remains Volatile As U.S. Trade Balance data Misses Expectations, Markets Eye FOMC Meeting Minutes; April 07, 2021

U.S. FOMC Meeting Minutes

The key event for the day will be U.S. FOMC Meeting Minutes. It’s a detailed record of the FOMC’s most recent meeting, providing in-depth insights into the economic and financial conditions that influenced their vote on where to set interest rates. It is scheduled 8 times per year, 3 weeks after the Federal Funds Rate is announced.

Last time when Fed met on March 17, Federal Reserve confirmed that funds rates will be on hold until 2023 but a few days later, they said the supplementary leverage ratio for banks that allowed for more flexibility during the pandemic would expire at the end of March. In addition, Fed announced to continue to increase its holdings of Treasury securities by at least $80 billion per month and of agency mortgage ‑ backed securities by at least $40 billion per month until substantial further progress has been made toward the Committee’s maximum employment and price stability goals.

Fed Chair Powell added that, the path of the economy will depend significantly on the course of the virus, including progress on vaccinations. The ongoing public health crisis continues to weigh on economic activity, employment, and inflation, and poses considerable risks to the economic outlook.
Now the traders are eagerly looking in to the FOMC Meeting Minutes to know the exact scenario and expectations of the Fed.

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

Feb 17:

Jan 06:

Technical View:
XAU/USD (Gold):

Gold remains volatile after U.S.’s trade balance data. The Actual Trade balance comes lower than expected and gold spiked up from $1,730 to $1,736 mark. The pair made intraday high at $1,744 and low at $1,730 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, a consistent close below $1,732 will check further supports.

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