Forex Marketz Daily Forex News – Fully Markets Update
Gold investors began the week, returning from the Easter holiday a bit worried. The price of spot gold (XAU/USD) reversed from intraday gains as recovering sentiment weighed against Treasury bonds yields. This ended up boosting the US Dollar along the way, and bringing the price of gold lower.
US equites were led higher by financial plays as they mirrored the 2017 rate hike outlook implied in Fed Funds futures. Although the hawks’ hopes for another Fed rate hike has waned somewhat. The probability of a June hike is 50.2 percent now, down from 63.2 percent last week.
There is also some worries over the elections in France which could dent sentiment and once again boost the appeal for the yellow metal. First round voting is on April 23. Right now, the leading candidates are clustered near 20 percent in the polls. This makes for unusually high uncertainty about who will make it into the final contest. There is a possibility that two extreme candidates, Marine Le Pen and Jean-Luc Melenchon, neither of whom please the markets, may be the left standing.
Gold Technical Analysis
My gold technical from yesterday, remains largely intact.
A daily close back above a small congestion area that run from 1302.90 to the former support at $1,308 per ounce targets the next upside target at 1316.20.
The alternative technical analysis notes the first downside barrier lining up at 1282.30. A break below this first technical support challenges the next downside barrier that lines up at the end of a cluster zone that runs to the February 27 high. This area is at 1263.88 to 1265.65.
