Gold Weakens Sharply Ahead of U.S.’s Advance GDP Results, 15+ Volatility Likely in Gold: April 29, 2021
U.S. Advance GDP q/q
Today U.S will release Advance GDP data at 1230 GMT/1800 IST. It’s the broadest measure of economic activity and the primary gauge of the economy’s health. While this is q/q data, it’s reported in an annualized format. There are 3 versions of GDP released a month apart – Advance, Preliminary, and Final. The Advance release is the earliest and thus tends to have the most impact. If the actual GDP comes higher than expected, it will be beneficial to the U.S. dollar.
Let’s see how Gold has reacted during the previous data release:
Jan 28, 2021:
Oct 29, 2020:
XAU/USD (GOLD): Gold erases previous gain against U.S. dollar and touches $1,773 mark in European hours. The pair made intraday high at $1,790 and low at $1,773 mark. A day as well as H1 chart suggests bullish trend for the time being. Current downside movement was likely to be short term trend correction only. A sustained close above $1,789 on H1 requires for the upside rally. Alternatively, a consistent close below $1,765 will check further supports.
Key Resistances: $1,790, $1,797, $1,805, $1,812, $1,817, $1,822
Key Supports: $1,772, $1,768, $1,762, $1,758, $1,754, $1,748
Take a look and do trade wisely!