Forex Marketz Daily Forex News – Fully Markets Update
The spot gold futures contract has been in consolation mode over the last month. Federal Reserve commentary also did not inspire traders to take action one way or the other last week.
Looking at the four (4) hour spot MT 4 chart, the sideways price action continues into the start of the week.
Today, the Congressional testimony from Federal Reserve Board Chair Jerome Powell should dominate any potential price action with the sport gold contract. However, this should be minimal at best. Especially, if Mr. Powell sticks to the script.
Powell is expected to reinforce what the Federal Reserve Board said last week during their press conference and their commentary over the last few weeks. The Fed has prioritized job creation over inflation.
Last week, during their monetary policy and rate decision, the Fed signaled that they will keep their Fed Funds Rate (FFR) at zero to 0.25 percent until at least 2023.
Federal Reserve monetary policy maker Williams is also giving commentary on Monday. The Chicago Fed will release their monthly national activity index during the North American trade session.
Germany will publish their monthly BUBA index for the month and the United Kingdom is holding their inflation report hearings. Canada has no economic data on the schedule.
Daily Spot Gold Technical Analysis
Looking at price action the first layer of technical resistance gold is facing lines up at $1,973.55 per ounce. The next upside barrier lines up at the key and psychological barrier at $2,000 per ounce with the next layer of technical resistance then lining up at $2,015.65 per ounce.
On the downside, the spot contract notes the first downside barrier at the downward sloping trend line that has held at least three times. This level lines up at $1,915.50 per ounce.
There are also a series of higher lows and lower highs on the chart, which is interesting and not seen a lot. The technical indicators are also around their mid-lines signaling more consolidation could be in store for the spot contract.
