Forex Marketz Daily Forex News – Fully Markets Update
Looking at the widely popular spot gold futures contract on the above daily MT 4 price action chart, the price of the spot contract is consolidating at the short term 21 day simple moving average, below the fifty (50) day simple moving average and above the one hundred day simple moving average (SMA).
Gold traders will be watching geopolitics between the United Kingdom and the European Union closely. Both sides are engaged with tense free trade agreement (FTA) talks. Some progress has been made, but talks are on the brink of collapse.
According to Prime Minister Boris Johnson, the United Kingdom is preparing to crash out of the Eurozone at the 31 December deadline with or without a new FTA in place.
The International Monetary Fund (IMF) is holding their meeting on Sunday. Also speaking, on Sunday, Bank of England Governor Andrew Bailey. On Monday Bank of England monetary policy member, and Deputy Governor, Sir Jonathan Cunliffe is speaking.
The United States has no economic data scheduled for release on Monday. The Eurozone will release monthly construction data. Germany, will release their monthly BUBA report.
Looking at price action, the spot gold contract is lacking price direction heading into the week. The relative strength index (RSI) is just below the mid-line at fifty (50) and the recovery seen during the latter half of last week struggled to gain upside traction.
Daily Spot Gold Futures Technical Analysis
With that said, the first layer of technical support is seen lining up at $1,895 per ounce. There is a key level of technical support just below at $1,875 per ounce.
A daily close below this downside barrier will open the door to challenge the 28 September low price point that lines up at $1,848 per ounce.
On the upside, the spot contract has the first layer of technical resistance lining up at the 50 day SMA. This lines up around $1,920 per ounce.
The next upside barrier lines up at $1,950 per ounce with $1,980 per ounce then coming into focus.
