Forex Marketz Daily Forex News – Fully Markets Update
The widely traded spot gold futures contract is trading below $1,800 per ounce. The yellow metal has come under pressure after rising Treasury yields supported the U.S. dollar.
U.S. labor market data, released on Thursday by the Labor Department, showed weekly initial jobless claims falling 12,000 to 375,000. This was for the week ending 7 August.
The U.S. Bureau of Labor Statistics also published monthly producer price index (PPI) numbers that final monthly PPI was up 7.8 percent from the June annual number of 7.3 percent. This was above median economic forecasts as inflation continues higher in the United States.
Today’s economic calendar is not very busy going into the weekend. There was not a lot of headline economic released this week for spot gold trader to react to.
The University of Michigan will release their monthly preliminary consumer sentiment and inflation surveys for the United States. The U.S. will also release monthly trade numbers during the North American trade session.
Germany releasing their monthly WPI and the European Union will publish monthly trade balance numbers. The United Kingdom and Canada have no economic data scheduled for release on Friday.
Daily Spot Gold Technical Analysis
Looking at the above daily spot gold (XAU/USD) MT 4 price action chart, the 14 day relative strength index (RSI) is consolidating around forty (40) and below the mid-point. This could indicate more weakness for the bullion in the short-term as gold is correcting lower from overbought.
There is immediate technical support lining up at $1,730 per ounce. The next barrier of technical support lines up the 10 August low price of $1,720 per ounce.
On the upside, there is the immediate level of technical resistance in play at $1,760 per ounce. A daily close above $1,760 opens the door to challenge $1,785 per ounce with $1,795 then coming into play. The 20 day simple moving average lines up near the psychological level of $1,800.
