Forex Marketz Daily Forex News – Fully Markets Update
Looking at the spot gold futures contract (XAU/USD) and above daily MT 4 price chart, the yellow metal has failed to break above the one hundred (100) day simple moving average and is trading quietly in the 21 day simple moving average envelope.
The spot gold contract is trading between the 21 day and fifty (50) day simple moving averages as news out of the United States is buffeting the safe haven dollar (USD) and confusing gold traders. Outgoing President Donald J. Trump is refusing to concede loss.
He continues to claim baseless accusations of a rigged and stolen election and said last night he could “be the next administration” while talking about the defense and $900 billion fiscal packages he refusing to sign.
President Trump shocked Congress when said he would veto the $900 billion coronavirus fiscal aid package unless Congress raised the payment amount to individuals from $600 to $2,000. He then rattled the sabre when warned Iran over its attack in Baghdad
Across the Pond, spot gold traders are monitoring ongoing Brexit negotiations. Both sides, the United Kingdom and European Union are signaling that a trade deal can be reached sometime today. With that said, the European Union’s Chief Brexit Negotiator Michel Barnier said that they are “going through the details now of UK trade deal, no final agreement yet confirmed.” The European Commission released a statement, overnight, that they could have a trade deal in place sometime Thursday morning.
Daily Spot Gold Technical Analysis (XAU/USD)
Looking at price action with the spot futures contract, as we head into Christmas Eve, the Doji candlestick formed on Monday and the inside bar candlestick that was seen on Tuesday is signaling hesitation among gold traders. However, the move higher might not be over as the bullish chart flag pattern remains valid.
This is because the channel in play from the August and November high price points and the September low price point has yet to be breached.
With that said, while below the one day simple moving average at $1,899 per ounce, the appearance of a falling wedge chart pattern is a good signal for the bears. However, a daily close below $1,865 per ounce is needed to confirm the bearish price action shift.
On the flip side, a close above $1,899 per ounce opens the door to challenge the upside barrier in play at $1,915 per ounce.
