Forex Marketz Daily Forex News – Fully Markets Update
Looking at the above thirty (30) minute spot gold futures chart, the yellow metal is consolidating after its impressive run higher overnight. The almighty dollar was under heavy pressure after the United States reported that their second quarter gross domestic product (GDP) saw a record breaking contraction.
The overall weakness seen with the greenback supported the gold bullion as traders are taking aim at $2,000 per ounce. With that said, the dollar started seeing some weakness after the FOMC monetary policy and rate decision. Their press statement was a bit confusing with regards to risk themes and this cause volatility with at risk asset classes like equities.
Today the United States will publish the monthly PCE price index and consumer spending. Canada will publish their quarterly gross domestic product (GDP) data as will Italy and Spain. The Eurozone is releasing their monthly consumer price index and Germany will publish monthly retail sales data.
Daily Spot Gold Technical Analysis
Looking at price action on the above chart, the spot contract hit a high price point of $1,984.34 per ounce overnight. Gold is now consolidating as traders are hesitating at this price altitude. On the downside, $1,940 per ounce is the first layer of technical support. A daily close below this level opens the door to challenge $1,910 per ounce.
Looking at the technical indicators on the spot gold chart, the MACD histogram and relative strength index (RSI) are both flashing bullish signals. The MACD is back within the green and above the mid-line. The RSI is back above fifty (50) and has a lot of room towards the upside.
A daily close above $1,985 per ounce will open the door for that all-important upside barrier lining up at $2,000 per ounce. A downside trend reversal could take shape with a sustained close below $1,910 per ounce. Price action is consolidating and a breakout is needed to confirm which way price action will go next.
