Forex Marketz Daily Forex News – Fully Markets Update
The widely traded spot gold futures contract, on the above 15 minute MT 4 chart, is trading just below $1,784 per ounce and at the bottom of a rising ascending triangle chart pattern. Yellow metal has already traded near a high price of $1,787 per ounce during the early Asian trade session.
There is not a lot on the global economic calendar to move the price of the spot gold contract. Traders will be watching new Covid-19 (coronavirus) headlines as cases are spiking across the United States forcing various states to close businesses to stem the spread of the outbreak.
This threatens to derail the fragile economic recovery in the United States and should provide some support for safe haven assets like the gold bullion.
States like California and Florida are issuing new lockdown orders in populous counties that are seeing a sharp spike in Covid-19 cases. This includes closing pubs and restaurants.
The President of The United States, is once again taking flack over how he is handling the pandemic. Donald Trump, has said that it is due to more testing that his country is seeing more coronavirus cases. He has also said that the pandemic that has killed over a 530,000 around the world is not very dangerous.
As far as economic data is concerned, the U.S. is releasing JOLTS jobs openings data and Canada will release their monthly Ivey purchasing managers’ index (PMI). The Eurozone’s largest economy, Germany, is publishing monthly industrial production data. Italy, the EU’s third largest economy, is publishing monthly retail sales data and France is releasing their trade balance. The United Kingdom is publishing minor monthly housing data. This is the Halifax housing price index (HPI).
Daily Spot Gold Technical Analysis
As mentioned above, the spot gold contract has formed an ascending triangle on the short term 15 minute MT 4 price action chart. This ascending triangle connects the higher lows as well as a key horizontal layer of technical resistance.
This triangle pattern usually forms during an uptrend. With that said, a daily close above the key technical layer of resistance at the round number of $1,800 per ounce would give way to a meaningful recovery with the yellow metal.
A daily close below the ascending triangle, lining up at $1,783 per ounce, will shift focus towards the downside barrier in play at $1,775 per ounce.
