Forex Marketz Daily Forex News – Fully Markets Update
Looking at the widely traded spot gold futures contract on the above daily MT 4 chart, the spot contract gained nearly 0.9 percent on Monday.
Price action is now trading near the top of a four week old descending triangle chart pattern.
The economic calendar starts to pick up on Tuesday. The biggest event affecting the price action with the spot gold futures contract is the start of the Federal Open Market (FOMC) monetary policy and rate decision meeting. The monetary policy arm of the U.S. Federal Reserve board will announce their monetary policy decision on Wednesday.
As far as economic data is concerned, the world’s largest economy will release the monthly Empire State manufacturing index. The U.S. is also publishing monthly import prices as well as monthly industrial production data. Capacity utilization data is also on the schedule for today.
The United Kingdom is releasing key labor sector data. This includes their monthly claimant count change, unemployment rate and three month average hourly earnings change.
The European Union will release their monthly ZEW economic sentiment survey as will their largest economy, Germany.
Daily Spot Gold Technical Analysis (XAU/USD)
Looking at price action on the above daily MT 4 chart, the spot gold contract sees the triangle resistance level coming into play at $1,970 per ounce. A daily close above this level will bring the bulls into the market to challenge the record high price point, from 7 August into play.
This upside level lines up at $2,075 per ounce. There is another layer of resistance before the record high price point to watch. This upside barrier lines up at the 18 August high price point at $2,016 per ounce.
With that said, looking at the 14 day MACD histogram, there are higher lows with the signal lines. This indicates that an upwards price trend could come into play.
On the downside, triangle support lines up at $1,910 per ounce. The next layer of downside support then lines up at the round $1,900 per ounce number.
