Forex Marketz Daily Forex News – Fully Markets Update
The price of spot gold (XAU/USD) has continued to move lower as investors switch on risk appetite. There is a better mood in the financial markets after senior officials, u of the United States, including the heads of state and defense departments, the national security advisor and the director of the Central Intelligence Agency (CIA) sought to deescalate tensions with North Korea following last week’s fiery rhetoric from President Donald Trump.
Gold investors also eyed Treasury bond yields which rose alongside stock prices. This drained the demand for non-interest-bearing assets including the bullion. Easing fears about politically inspired instability were also seen. This could be seen as increasing probability that the Federal Reserve will tighten monetary policy further. The 2017 Fed rate hike path has steepened and the US Dollar rose. This undermined the relative appeal of anti-fiat assets like gold.
On the economic calendar, US retail sales data may increase the selling pressure on the bullion. Especially if the numbers echo a broad improvement with economic data seen since June. This will be seen as boosting Fed stimulus withdrawal before the end of the year.
Gold Technical Analysis
Let’s look at today’s daily technical analysis for the bullion. Things have not really changed from yesterday’s outlook.
The price of the yellow metal looks ready to challenge a Trend defining resistance zone. This area ranges from 1,293.90 to the double top near 1,295.50. A daily close above this zone, challenge the next upside barrier at $1,303.98 per ounce.
The alternative technical analysis notes a support level lining up at 1,285.75. A break below this first downside barrier challenges the next layer of technical support lining up at 1,277.60.
