Forex Marketz Daily Forex News – Fully Markets Update
The price of US spot gold (XAU/USD) spiked lower to a six week low after Emmanuel Macron won over 65 percent of the vote against far-right presidential candidate Le Pen to become France’s youngest president at the age of 39. This boosted sentiment in riskier assets and sapped the strength out of safe haven assets like gold.
The move was not a long lived one. Mr. Marcon soundly beat hard right candidate Marine Le Pen by a margin of 65 to 35 percent. This outcome was well in line with projections ahead of the vote. This means that gold traders did not get anything out of the nor as it was already priced in. This means follow through was short lived.
On the economic docket, later in the day, there will be comments from Cleveland and St. Louis Fed Presidents Loretta Mester and James Bullard. These are likely to pass quietly as the Fed funds outlook for rate path is firmly in place now. This could see the price of the yellow bullion go into congestion mode.
Gold Technical Analysis
Using the above daily MT 4 chart, let us discuss today’s gold technical analysis. The price of the bullion is trading quietly after hitting its lowest price point since mid-March. A daily close below the first lay of technical support challenges the next downside barrier lining up at $1,199/1200 per ounce.
The alternative technical analysis notes the first upside barrier lining up at $1,241.50 per ounce. This is a former support level with the next layer of technical resistance lining up at 1,258.60.
