Forex Marketz Daily Forex News – Fully Markets Update
Looking at the widely traded spot gold futures contract on the above daily MT 4 chart, the bullion is trading lower and below $1,685 per ounce during the morning Asian trade session. Price action is also below all three of the key daily simple moving averages.
Spot gold is on the back foot as the U.S. dollar is moving higher thanks to rising Treasury yields and safe haven status as a number of geo-political events are weighing on sentiment. All of this has boosted the American dollar to a multi-day high which has weakened spot gold prices this week.
In Europe, the global coronavirus pandemic (Covid-19) is surging throughout the Continent. There are worries about vaccine supply in the euro area. Also concerning gold traders is the continued tensions between China and the United States.
The U.S. is unhappy with China’s inference in Hong Kong. Now there are reports that British Trade Secretary Liz Truss will ask other global leaders to toughen there stance on China.
The United States is also accusing Russia of stealing thousands of the US State Department documents. The United Nations has also remained silent as North Korea which could make it harder for the U.S. to reign in the rogue nation.
This risk-off sentiment is boosting the safe haven appeal of the U.S. dollar over gold. There has also been better than expected economic data out of the United States.
Daily Spot Gold Technical Analysis
With all that said, looking at price action on the above daily chart, the gold contract is below the fifty, one hundred and two hundred (50, 100, 200) daily simple moving averages.
These daily simple moving averages are also sloping lower adding to the bearish mood in this market.
Gold is trading below $1,730 per ounce and while below this upside barrier, could see a challenge of $1,675 per ounce.
On the upside, a daily close above $1,730 per ounce opens the door to challenge $1,785 per ounce before the key round number in play at $1,800 per ounce.
