Forex Marketz Daily Forex News – Fully Markets Update
Looking at the spot gold futures contract and above daily MT 4 price action chart, gold is on the defensive and looking to challenge the two hundred day (200) simple moving average, which is the last line of defense before $1,800 per ounce.
There is a lot of political turmoil in the United States that spot gold traders are watching. Last week pro Trump insurrectionists stormed the United States Congress. At least four were killed including a police officer. They were driven to action by President Donald Trump who falsely claimed the election was stolen and rigged. He told them at a rally “to fight.”
Now comes the aftermath. The Democratic controlled House of Representatives are preparing articles of impeachment. They want to immediately remove him from office. Lawmakers on both sides of the isle are supporting this measure.
However not enough Republicans are. There is also talk of using the 25th Amendment to declare him unfit to serve the remainder of his term. Vice-President Pence does not support this effort.
This will lead to price volatility with the almighty U.S. Dollar (USD). Monday’s economic calendar is light. The big event is the Governor of the Bank of England (BOE). Dr. Bailey will be giving a speech.
Traders will look for signs about further asset purchases. Spot gold traders will look for clues about further accommodative monetary policy measures.
The euro area is releasing monthly Sentix consumer confidence and the United States has no economic releases on their calendar.
Daily Spot Gold Technical Analysis (XAU/USD)
Looking at price action, this futures contract broke below the rising trend line on Thursday. This has caused the yellow metal to trade near a fresh two week low price point at $1,839 per ounce.
This contract is now below the twenty, fifty and one hundred (20, 50, 100) daily simple moving averages.
The 14 day relative strength index (RSI) has moved lower near forty (40). This is another bearish signal before becoming oversold.
The first layer of technical support lines up at the 200 day SMA. This is at $1,840. If this breaks, the key barrier lining up at $1,800 per ounce comes into play. On the upside, the 50 day SMA is the first upside barrier.
This level is at $1,870 with the 100 day SMA coming into play next at $1,890. The next layer of technical resistance lines up at $1,900 per ounce.
