Forex Marketz Daily Forex News – Fully Markets Update
The popular spot gold futures contract as defended the downside barrier lining up at $1,800 per ounce once again. Right now, headed into Wednesday, the yellow metal is range trading between $1,818 and $1,790.
Traders are reacting to the strong U.S. June consumer price index report as well as rising Treasury yields. The U.S. dollar is also weaker which is helping the spot gold contract.
Inflation data now turns to factory gate prices. Spot gold traders are watching rising price pressures closely. During the European trade hours, the United Kingdom is publishing their monthly core and headline producer price index.
The UK is also publishing June’s core and headline consumer price index (CPI) and the monthly housing price index (HPI). The world’s largest economy, the United States, is publishing their monthly producer price index and weekly crude oil inventory data.
The U.S. Federal Reserve will release their Beige Book. The Bank of Canada (BOC) is announcing their monetary policy and interest rate decision. The Bank of Canada will also release their monetary policy statement. Germany will release monthly industrial production data.
Daily Spot Gold Technical Analysis
Looking at the above daily MT 4 chart, the spot gold futures contract (XAU/USD) has, for the second day in row defended the key $1,800 per ounce level and bounced higher. This is also the fifty (50) percent Fibonacci level. Also, the 14 day relative strength index (RSI) is inching higher and above the mid-point signaling a bullish trend could continue.
Gold has immediate technical resistance at the 200 day simple moving average and 38.2 percent Fibonacci level at $1,828. The next upside barrier comes into play ay the fifty day simple moving average. This level lines up at $1,838 per ounce.
Key psychological support is at $1,800 per ounce. The next downside barrier lines up at the 100 day simple moving average. This downside barrier is at $1,790 with $1,770 per ounce then coming into focus.
