Forex Marketz Daily Forex News – Fully Markets Update
The corrective gain seen with the spot gold future contract seems to be running out of steam. The yellow metal ran into resistance around the 23.6 percent Fibonacci level and inched lower. The U.S. dollar is also seeing safe haven inflows.
There are some geopolitical issues weighing on sentiment and with gold traders. Issues between the United Kingdom and the European Union are an ongoing issue.
Both sides remain divided over fisheries in the Atlantic Ocean and Northern Ireland remains an ongoing key problem between the UK and Eurozone.
However, the lead negotiators on both sides remain hopeful of reaching an agreement. Traders are also monitoring worrying Covid-19 lockdown headlines in the euro area. Tensions on the Belarus border over migrants are also weighing on market sentiment.
Monday’s economic calendar is not very busy. The U.S. Chicago Federal Reserve will release their monthly national activity index. The European Union will publish an initial monthly consumer confidence survey. The United Kingdom has no top tier data scheduled for release.
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 falling lower from seventy (70) which indicates overbought conditions. The RSI, however, is now around 60 which could bring some gains for the spot gold contract.
On the upside, there is strong static resistance lining up at $1,870 per ounce. A daily close above this level could bring $1,880 per ounce into play next.
While below $1,880 the bears should remain in control. However, the psychological level of $1,900 per ounce then comes into the picture on the upside.
Looking lower, a daily close below the key static support at $1,850 per ounce, brings the sellers into this market. The next downside barrier lines up at $1,830 with the 20 day simple moving average around $1,820 coming into focus next.
