Forex Marketz Daily Forex News – Fully Markets Update
The spot gold futures contract saw a bit of a tumble on Friday. Price action fell below the two hundred (200) day simple moving average.
The spot contract is also trading below the one hundred (100) day simple moving average and is just above the fifty (50) day simple moving average.
The new monthly economic calendar begins on Monday. The deluge of economic data begins with monthly Markit manufacturing purchasing managers’ indices (PMI). In the euro area, the largest economy in the Eurozone, Germany, will release their monthly manufacturing purchasing managers’ index. The United Kingdom will also publish their monthly Markit manufacturing purchasing managers’ index.
The United States is also publishing a set of PMIs. The world’s largest economy will publish their Markit manufacturing purchasing managers’ index. The Institute for Supply Management (ISM) will publish their manufacturing purchasing managers’ index (PMI).
China is also publishing some manufacturing purchasing managers’ index numbers, as well. Traders will focus on the private monthly Caixin manufacturing purchasing managers’ index out of the world’s second biggest economy.
Daily Spot Gold Technical Analysis
Looking at the above daily spot gold MT 4 chart, the 14 day relative strength index (RSI) is below the mid-point at 50 which could bring more losses for the spot gold (XAU/USD) contract. The yellow metal is also below a rising trend line in play since the start of October.
A daily close below the former resistance now support level, as well as the 61.8 percent Fibonacci level, at $1,770 opens the door to challenge the downside barrier at $1,750 per ounce. The next lay of technical support lines up at $1,730 per ounce.
On the upside, there is technical resistance lining up at the 100 day simple moving average at $1,790 per ounce. The next upside level is at the psychological $1,800 per ounce level before the upside barrier at $1,810 per ounce comes into focus.
