Forex Marketz Daily Forex News – Fully Markets Update
The price of spot gold (XAU/USD) fell lower thanks to a drop in geopolitical fears was matched, as expected, with an upbeat US retail sales print. This has bolstered Federal Reserve interest rate hike prospects, for this year. This supported the US Dollar alongside Treasury yields. In turn, this undermined support for non interest bearing and anti-fiat assets like gold.
Gold investors now turn their attention to the minutes from July’s Federal Open Markets Committee (FOMC) meeting. Rhetoric suggesting FOMC policymakers remain confident in their economic growth projection, which was last updated in June, and called for three interest rate hikes in 2017 could be bad for non-interest bearing assets. We have already seen two rate hikes this year. This could further sap strength out of the yellow bullion.
Gold Technical Analysis
Prices have declined with the yellow metal. This is to be expected.
There is a bearish Evening Star candlestick on the charts. A daily close below the first layer of technical support at 1,270.30 opens the door for a challenge of the next downside barrier lining up at $1,264.65 per ounce.
The alternative technical analysis, notes the first upside barrier lining up at 1,278.80. The next significant barrier of resistance lines up at 1,295.50.
