Gold Weakens Sharply Ahead of U.S. ADP Job results, $11+ Volatility Likely; Jan 06, 2021
U.S. ADP Non – Farm Employment Change
U.S. will release ADP job data around 1315 GMT/1845 IST. This data provides an early look at employment growth, usually 2 days ahead of the government-released employment data that it’s designed to mimic. Job creation is an important leading indicator of consumer spending, which accounts for a majority of overall economic activity. Important to note here that, out of last 6 times, only one time, this data is released with positive numbers only.
Let’s see how Gold has reacted during the previous data release:
XAU/USD (Gold): Gold spikes down sharply as markets eye on the results of the second senatorial race in Georgia and certification of the Electoral College results. Lots of discussions are going on about what will happen but there are high possibilities for the official announcement of Biden’s victory today.
The pair made intraday high at $1,959 mark and low at $1,941 mark. On the top side key resistances are seen at $1,962, $1,972, $1,976 and $1,985 mark respectively. Alternatively, reversal from this will drag the parity down towards key supports around $1,940, $1,932, $1,920, $1,912 and $1,902 mark.
Take a look and do trade wisely!