Forex Marketz Daily Forex News – Fully Markets Update
Looking at the widely traded spot gold futures contract on the above thirty (30) minute MT 4 price action chart, gold is consolidating yesterday’s sharp gains.
Gold traders are expecting that President Joe Biden will boost fiscal stimulus to shore up a coronavirus (Covid-19) battered economy and reverse the economic slowdown.
During the Asian trade session on Wednesday, the spot gold futures contract is trading just below $1,870 per ounce. The spot contract (XAU/USD) jumped 1.7 percent on Wednesday for its largest daily percentage gain since 4 January. President Joe Biden, the 46th President of the United States unveiled, last week, a $1.9 trillion pandemic fiscal rescue stimulus plan.
The Biden administration is now hoping to follow that up with another fiscal package focusing on climate and infrastructure. President Joe Biden, on day one signed at least 15 executive orders to reverse a number of Trump policies.
Gold traders were also watching some negative headlines, as well. China has announced a list of 28 Americans, most of the from the Trump administration including Secretary of State Mike Pompeo, to face sanctions. The coronavirus case toll in the Northern hemisphere has flattened a bit but the death toll is rising.
On today’s economic calendar, the big event to monitor is the monetary policy and interest rate decision from the European Central Bank (ECB). The European Central Bank is not expected to change their monetary policy settings.
The U.S. Labor Department will publish weekly first time unemployment claims as well as continuing claims data. The Philadelphia Fed is publishing their monthly manufacturing data.
Daily Spot Gold technical Analysis
Looking at price action on the above XAU/USD chart, this contract looks in good shape to extend some gains.
For that to happen a daily close above the two hundred (200) hour simple moving average at $1,848 per ounce is needed.
The next upside barrier to watch line up at the fifty (50) hour simple moving average and the 12 January high price point. These levels are at $1,960 and $1,865 per ounce, respectively.
While below the 200 hour SMA, the ascending trend line in play since March at $1,830 comes into focus.
