Forex Marketz Daily Forex News – Fully Markets Update
The price of gold (XAU/USD) recoiled lower from a 15 week high during the US trading session. The yellow metal erased gains that brought it to its highest level since mid-November. Gold finished fractionally lower. In contrast, money moved into the US Dollar and Treasury yield also climbed ahead of President Donald Trump’s speech to Congress Tuesday night.
What is most interesting here, is that the reversal came on a slow US news day. This means traders are unwinding positions ahead of Trump’s speech as they are expecting to hear more about his fiscal policies, tax reform and deregulation policies. This could lead to a tightening of the Fed’s monetary policy steepening the rate hike trajectory.
There is also a busy day of Fed speak as Harker, Williams and Bullard are all speaking. There is also the release of the revised fourth quarter gross domestic product number coming out. Gold is unlikely to budge much until Trump finishes his speech to Congress this evening.
Gold Technical Analysis
Using the above dilly MT 4 chart, let us discuss today’s daily technical analysis. As you can see, the appearance of a bearish dark cloud cover candlestick after hitting a 15 month higher hints to further losses ahead.
There is near-term technical support at the end of a cluster area running from the trend line. This area is at 1239.20 to 1245.35. A daily close below this level challenges the next layer of technical support lining up at 1218.90. This is a former resistance level.
The alternative technical analysis notes the first upside barrier lining up at 1263.14. A break above this first upside barrier challenges the next resistance level that lines up at $1,277.52 per ounce.
