Forex Marketz Daily Forex News – Fully Markets Update
The widely traded spot gold futures contract was unable to extend gains made on Wednesday so far during the Asian trade session. The gold bullion looks a bit cautious ahead of a volatile economic calendar.
Spot gold traders will focus on central bank news today. The Bank of England will conclude their monetary policy meeting this afternoon. The BOE’s Monetary Policy Committee (MPC) will announce their rate decision as well as monetary policy for August.
This includes monthly asset purchases. The BOE is far less patient with spiking consumer inflation than the U.S. Federal Reserve or the European Central Bank. This means The Old Lady could point that out in their monetary policy statement.
The rest of the economic calendar will focus on U.S. labor numbers. The United States will publish weekly initial and continuing jobless claims. The Challenger job cuts report will also be released. The U.S. will also publish July’s trade balance. In Europe, Germany is releasing monthly factory orders. France will publish monthly industrial production figures.
Daily Spot Gold Technical Analysis
Looking at the above daily spot gold MT 4 price chart, the yellow bullion is fading lower after correcting higher on Wednesday off the weekly low price point. Gold also formed a bearish gravestone Doji highlighted on the chart. Also, the 14 day relative strength index (RSI) looks negative.
Gold is also trading below the 50 day simple moving average as well as falling trend line since mid-July. On the lower end, the 100 day simple moving average is converging with the rising trend line from 29 June. This downside barrier lines up at $1,805 per ounce. The next layer of technical support comes into focus at $1,800 per ounce.
While above the 50 day simple moving average, at $1,823, the yellow metal could challenge the falling trend line in play at $1,834 per ounce. The next upside level comes into focus at $1,840 per ounce.
