Gold Trades Flat ahead U.S. Goods Trade Balance Data, $10+ Volatility Likely; Dec 30, 2020

U.S. Goods Trade Balance

Today’s U.S. session will remain busy as U.S. will release goods trade balance (1900 IST) and pending home sales (2030 IST) data. 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. A positive number indicates that more goods were exported than imported.

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

Nov 25:

Oct 28:

Technical View:

XAU/USD (Gold): Gold trades marginally lower and hovers around $1,880 mark. Today pair made intraday high at $1,886 and low at $1,877 mark. A sustained close above $1,902 requires for the upside rally. On the other side, consistent close below $1,860 will check key supports as well. Key support levels are seen around $1,872, $1,867, $1,855, $1,847, $1,832, $1,827, $1,820, $1,812, $1,802 and $1,787 mark respectively. Key resistances are seen at $1,887, $1,894, $1,902, $1,912, $1,924 and $1,937 marks respectively.

Take a look and do trade wisely!
Good Luck