Forex Marketz Daily Forex News – Fully Markets Update
The widely traded spot gold futures contracted corrected higher last week. The yellow bullion moved above the key one hundred (100) day simple moving average (SMA) on Friday, but could not close the week above this key SMA as the week ended.
This week, spot gold traders will be waiting for both the Federal Reserve Board’s (Fed) Federal Open Market Committee (FOMC) and the European Central Bank to release the June monthly monetary policy meeting minutes.
This will happen on Wednesday and Thursday, respectively. Gold traders will be looking for any clues as to when the Federal Open Market Committee will raise their key policy rate and where all 18 members of the FOMC stands.
Traders are also looking for clues on tapering of their monthly asset purchase program and where the Federal Open Market Committee stands on spiking consumer prices.
Gold traders will be looking for more of the same from the European Central Bank. The ECB, over the next few weeks will be meeting how to tweak monetary policy and their inflation forecasts. They want to finish this review by September.
As far as economic data is concerned on Monday, gold traders will pay close attention to the monthly composite purchasing managers’ indices (PMI) from the euro area and Germany.
Daily Euro Spot Gold Technical Analysis (XAU/USD)
Looking at the above spot gold (XAU/USD) daily MT 4 price chart, the 14 day relative strength index (RSI) is below the mid-line at fifty (50) which could be a good signal for yellow metal buyers. However, price action failed to close above the 100 day simple moving average.
A daily close above the 100 day simple moving average at $1,790 per ounce will see a challenge of the next layer of technical resistance lining up at the key psychological level of $1,800. This is also the 50 percent Fibonacci level. The 20 day simple moving average lines up at $1,815 per ounce.
On the downside, initial technical support lines up at the 61.8 percent Fibonacci level. This barrier is at $1,750 per ounce. The next layer of technical support lines up at $1,740 per ounce.
