Gold Remains Volatile On Robust U.S. ADP Job Results, U.S. ISM Services PMI Data in Focus; Feb 03, 2021
U.S. ISM Services PMI
U.S. will release ISM Services PMI data at 1500 GMT/2030 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.
Let’s see how Gold has reacted during the previous data release:
XAU/USD (Gold): U.S. dollar weakens noticeably despite higher than expected ADP Employment Change data. The parity gave $8 volatility from $1,842 to $1,835 mark. In line with U.S. dollar, gold strengthens after ADP job results and currently hovers around $1,840 mark. A sustained close below $1,828 on a Day Chart requires for the downside rally. Alternatively, reversal from key support will take the parity back above $1,850 mark. On a Day Chart as well as H1 chart, triple EMA confirms the bearish trend too.
Key Resistances: $1,847, $1,854, $1,862, $1,876, $1,884
Key Supports: $1,832, $1,828, $1,820, $1,815, $1,808
Take a look and do trade wisely!