Forex Marketz Daily Forex News – Fully Markets Update
Looking at the popular spot gold futures contract, price action is seeing a “golden cross” forming. This happens when the fifty (50) and two hundred day simple moving averages (SMA) cross. More specifically when the 50 day simple moving average crosses over the 200 day simple moving average. This could be a bullish signal.
However, spot gold remains below both the 50 and 200 day simple moving averages. This indicates more possible losses for the bullion could lie ahead. The XAU/USD futures contract has been pressured lower since the start of July as the U.S. dollar has shown broad based strength.
The economic calendar is quiet on Monday. The United Kingdom and the United States have key events on their calendars. This is the same for many key economies including Switzerland, Canada and Australia. The economic calendar for the European Union is also quiet. Germany will publish monthly WPI data.
Gold prices should be driven by global coronavirus pandemic (Covid-19) headlines. On 19 July, the United Kingdom is scheduled to end most of their remaining Covid-19 restrictions. However, the spread of the more infectious Delta coronavirus variant could be an issue.
Also, in the United States, the Delta variant makes up more than fifty percent of the new coronavirus cases in the country. Especially in areas of low vaccination rates.
Daily Spot Gold Technical Analysis
Looking at the above spot gold contract and daily XAU/USD MT 4 price action chart, the yellow metal has formed a number of higher highs and higher lows over the past several months.
On the upside, the July high price point at $1,820 per ounce is immediate technical resistance. The next upside barrier lines up where the 50 and 200 simple moving averages nearly converge. This is at $1,830 per ounce. The next upside barrier lines up at $1,850 before $1,920 per ounce then comes into play.
Immediate technical support lines up at $1,750 per ounce. This level has held up two times. The next downside barrier lines up at $1,678 per ounce with $1,565 then coming into play.
