How to trade Gold during U.S. Session?
Today’s U.S. session will remain empty without any key fundamentals and news. Market is likely to move on sentiments, stock indices and treasury yields. On the other end, oil futures are also trading up. Side by side, Wall Street is planning to come up with its own Central Bank Digital Currency. In current Pandemic, people are moving towards cashless transactions and thus most of the Central Banks are working to issue country’s own Digital notes. A digital dollar would look like cryptocurrencies such as bitcoin or ethereum in some limited respects, but differ in significant ways.
The Fed is currently working on a joint project with the Massachusetts Institute of Technology (MIT) to evaluate the efficacy of a digital dollar, though there isn’t a specific timetable on when or if the U.S. central bank will move forward. In recent interview, Fed Chairman Jerome Powell said; “There are many subtle and difficult policy choices and design choices that you have to make. We are doing all that work. We have not made a decision to do this because, again, the question is will this benefit the people that we serve? And we need to answer that question well”.
Let’s keep an eye on U.S. Economy and Covid situation to predict the movement of U.S. dollar.
XAU/USD (Gold): Gold Spiked down sharply in early U.S. session but consolidating around $1,770 mark. The pair made intraday high at $1,775 and low at $1,763 mark. A day chart is slightly bearish and H1 chart with triple EMA confirming uptrend for the time being. Still pair remains well supported around $1,770 only. A consistent and sustained break of either $1,775 or $1,762 will only provide further directions to the parity.
Key Resistances: $1,776, $1,783, $1,790, $1,794, $1,799
Key Supports: $1,762, $1,754, $1,748, $1,742, $1,738
Take a look and do trade wisely!