May. 7, 2021
After starting the day at $1,815.7, Gold rallied to $1,844.6, hitting its highest point in 2 months, It later lost $12.6 and closed at $1,832 (Trade Gold with FXTM now).
Gold's green move comes while some more encouraging signs are out as the United States Unemployment Rate published today at 12:30 PM came out at 6.1, falling short of the 5.8 projections and continuing its decline from the previous six figure. United States Non Farm Payrolls published today at 12:30 PM came out at 266,000, falling short of the 978,000 projections and continuing its decline from the previous 770,000 figure.
On the other hand, United States Initial Jobless Claims beat expectations of 540,000 with new data release of 498,000. This is also a step forward from the previous data of 590,000.
The Chart pattern study shows Gold immediate resistance is around $1,846.6, nearest support level is at $1,684. In terms of trend indicators, we can see that at $1,842.25, Gold made an initial breakout above the 200 day Simple Moving Average, an indication of a positive trend. The CCI indicator is above 100. When the CCI (Commodity Channel Index) is at this level, it means the price is above the average price as measured by the indicator, indicating a possible start of a new uptrend. Momentum evaluation shows The Relative Strength Index indicates Gold is in overbought condition. However, a slight indication of a slowdown comes from looking at the Bollinger bands: the upper band is at $1,830.51 – a high enough level to usually suggest Gold is trading above its value.
Overall, looking at the technical analysis landscape, it seems Gold is likely to continue pointing upward in the short term.
A look at other markets also shows green moves as a new all-time high for the S&P 500 as it reaches 4,236. The Euro is up by 102 pips(0.85%), making it its largest single-day gain since December 2020.
At the same time, Singapore dollar dropped by 0.61%, its largest single-day drop since May 2020. EUR/CAD hits a 1 year low, as it drops to 1.4649
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