Gold Weakens Ahead of U.S. ADP Job Results, $10+ Volatility Likely; March 03, 2021
U.S. ADP Non – Farm Employment Change
Today’s U.S. session will be important as U.S. will release ADP job results and ISM Services PMI results. Let’s take a look on ADP Job Results first.
Job creation is an important leading indicator of consumer spending, which accounts for a majority of overall economic activity. ADP analyzes payroll data from more than 23 million workers to derive employment growth estimations. If the Actual data is greater than forecasted, it will be good for U.S. dollar.
Let’s see how Gold has reacted during the previous data release:
XAU/USD (Gold): Gold weakens sharply in European hours and slips back below $1,730 mark. The pair made intraday high at $1,741 and low at $1,726 mark. Currently, triple EMA on H1 and a day chart signals bearish trend for the time being. A sustained close above $1,738 on H1 chart requires for the upside rally. Alternatively, current downside movement will drag the parity down towards key supports.
Key Resistances: $1,748, $1,754, $1,762, $1,768, $1,772
Key Supports: $1,722, $1,715, $1,708, $1,702, $1,697
Take a look and do trade wisely!