Forex Marketz Daily Forex News – Fully Markets Update
There is not a lot of major economic news to drive the price of US spot Gold (XAU/USD) this week. This could lead to gold consolidating a bit. The yellow metal swung sharply lower after a strong non-farm payroll report released last Friday. There is a weak economic calendar this week which will shift the attention of gold traders back towards Federal Reserve banker’s comments.
There has already been comments from Governor Lael Brainard. She is the Federal Reserve’s most vocal dove. Her comments are getting ready to cross the news wires. Even Brainard appears to favor another rate hike in 2017. It would appear that even the skeptical financial markets may themselves to resign to a more hawkish baseline. This should send the price of gold lower. Follow through seems unlikely right now. Investors are clearly waiting on testimony from Fed Chair Yellen. She is speaking to Congress later in the week.
Gold Technical Analysis
Looking at today’s gold technical analysis, the price pf the bullion is near a four month low. A daily close below a cluster zone running from the March 10 low at 1,195.10 to 1,199.70, will challenge the technical support that lines up a6 1,169.80.
The alternative technical analysis notes the first upside barrier lining up at the May 9 low at $1,214.50 per ounce. A break above this level, opens the door to challenge the next upside level lining up at 1,236.50.
