Gold Trades Flat Ahead of U.S. NFP Job Results, $11+ Volatility Likely; Jan 07, 2021

U.S. NFP Employment Change & Unemployemnt Rate

The wait is over. The key event for the week U.S. NFP Employment Change data will release at 1330 GMT/1900 IST. Job creation is an important leading indicator of consumer spending, which accounts for a majority of overall economic activity. This is vital economic data released shortly after the month ends. The combination of importance and earliness makes for hefty market impacts. Unemployemnt rate generally viewed as a lagging indicator, the number of unemployed people is an important signal of overall economic health because consumer spending is highly correlated with labor-market conditions. Unemployment is also a major consideration for those steering the country’s monetary policy.

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

Dec 03:

Nov 05:

Technical View:

XAU/USD (Gold):

  • The Gold trades flat ahead of U.S. NFP Job data and hovers around $1,790 mark.
  • 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 $1,798 on H1 chart requires for the upside rally.
  • Alternatively, a consistent close below $1,784 will check further supports.
$1,784 $1,798
$1,778 $1,804
$1,772 $1,809
$1,767 $1,814
$1,761 $1,821

Take a look and do trade wisely!
Good Luck