The widely traded spot gold futures contract snapped four weeks in a row of weekly gains. The yellow metal fell lower during the first have of last week and is currently consolidating losses around the 38.2 percent Fibonacci level and below the key psychological barrier of $1,800 per ounce.
The week’s economic calendar starts off Monday quietly. The headline event should be the publication of the Organization for Petroleum Export Countries (OPEC) monthly crude oil report. The United Kingdom will publish their monthly construction purchasing managers’ index (PMI).
The UK private retail group, BRC, will publish their like-for-like retail sales data. Neither the United States nor the European Union have any economic data scheduled for release. Spot gold traders will likely monitor coronavirus pandemic (Covid-19) headlines as a result.
Daily Spot Gold Technical Analysis
Looking at the above daily MT 4 price chart, the near-term price outlook for spot gold (XAU/USD) looks fairly neutral to bearish as a new trade week begins. The yellow metal is below the one hundred and two hundred (100,200) day simple moving averages. The 14 day relative strength index (RSI) has also moved lower and is below the mid-point.
There is initial technical support lining up at $1,790 per ounce. This is also the 38.2 percent Fibonacci retracement level. A daily close below $1,790 per ounce opens the door to challenge the next downside barrier that lines up at $1,780 per ounce. The next layer of technical support comes into play at the 50 percent Fibonacci retracement level at $1,760 per ounce.
On the upside, the spot contract has near-term technical resistance at the key psychological barrier of $1,800 per ounce. The next upside barrier lines up at the fifty (50) day simple moving.
This layer of term technical resistance comes into focus at $1,810 per ounce. The one hundred day simple moving then comes into the picture at $1,815/20 per ounce.