XAUUSD, H4
Gold continued to hold above $1,900 levels throughout the first week of trading in 2021, and managed to hit a two-month high of nearly $1,960 yesterday before the price dropped to 1,900, likely a direct result of the US Treasury yield. It rose to a nine-month high above 1.00, giving the US Dollar a short-term appreciation, although the ADP-Nonfarm figure (-123k) was significantly lower than expected.
There was a major political event last night in the United States as a group of supporters of President Trump raided the US Capitol to block the announcement of electoral voting results that would confirm Biden as the new President of the United States. However, the protests clearly did not crush investor confidence; last night, Dow Jones was at +1.44%, Nasdaq -0.61% and S&P 500 +0.57%.
From a technical standpoint, the H4 gold price has formed a rising wedge since December. The major support is at $1,900, close to the MA50 line resistance zone at the previous high of $1,955, despite a rising wedge reversal pattern that continued for several weeks. It is expected that traders and investors are now looking for signals to confirm such reversals. Important upcoming events on the economic calendar that should be watched include today’s unemployment benefits and ISM-PMI numbers and the Non-Farm tomorrow.
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Chayut Vachirathanakit
Market Analyst – HF Educational Office – Thailand
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