Forex Marketz Daily Forex News – Fully Markets Update
Looking at the widely traded spot gold futures contract and above daily MT 4 chart, the spot contract is on the defensive as the U.S. dollar is catching some bids after a not very dovish Federal Reserve commentary.
Spot gold traders are still digesting commentary made by the U.S. Federal Reserve Board (Fed) yesterday. During their monthly monetary press conference, Federal Reserve Chair Jerome Powell said that there will likely be no rate hikes for years.
There are a number of events on the economic calendar that should affect the price of gold. These include retail sales data and labor data. First up, Germany will publish monthly factory gate prices. The European Union is releasing their monthly current account.
The United Kingdom will release monthly retail sales data. Canada is also publishing monthly core and headline retail sales data as well as monthly wholesale prices.
The world’s largest economy, the United States, will publish weekly first time unemployment claims data as well as weekly continuing claims. The U.S. will also be releasing the monthly CB leading index. The University of Michigan is schedule to publish their preliminary monthly consumer sentiment index.
Daily Spot Gold Technical Analysis
Looking at the above price action chart, the spot contract is trading under $1,950 per ounce as the dollar index, which measures the greenback against six other leading currencies, is up 0.3 percent to trade at 93.40. With that said, from a technical analysis perspective, the spot gold contract seems ready for further losses.
The first downside barrier to watch lines up at the fifty (50) day simple moving average (SMA) lining up at $1,930 per ounce. If that level gives way, the bottom of the ascending triangle then comes into play. This layer of technical support is at $1,910 per ounce.
On the flip side a daily close above the Wednesday high price point lining up at $1,973 per ounce could be enough to bring the bulls back into the market. If this happens the key upside barrier lining up at the round $2,000 per ounce would come back into focus.
