Forex Marketz Daily Forex News – Fully Markets Update
The widely traded and popular spot gold futures contract gained about 0.85 percent on Wednesday. Looking at the above daily MT 4 price action chart, this futures contract is now trading above a falling trend line in play from both the 9, 23 November high price points.
The spot gold contract has gotten a boost from a weaker U.S. dollar. A weaker dollar makes purchasing the yellow metal less expensive, for those trading in other currencies, as well as storing and insuring.
Despite a coronavirus vaccine on the way, it will be at least half a year for it to ship and be effective. The pandemic is also spreading like wildfire throughout the United States. The world’s largest economy is also having difficulty passing a new pandemic fiscal stimulus aid package and they must also, somehow, agree on a new federal budget.
The U.S. Senate is divided and unable to agree on anything right now. They have been unable to agree on a new fiscal stimulus package. The Senate Democrats tried to open talks with a lower bill at $900 billion. They did want a package of $1.3 trillion. The Senate Republicans turned this downs as they want an aid package of around $500 billion.
On 11 December, the American Senate must find a way to compromise and reach a deal on a federal budget or risk a government shutdown at the time the coronavirus is raging across the states. All of this has the ability to change financial market sentiment at a blink of an eye, sending support to the safe haven greenback, which could see capital leaving the spot gold futures contract.
Daily Spot Gold Technical Analysis (XAU/USD)
The spot gold futures contract looks poised to challenge the upside barrier in play at $1,850 per ounce after confirming a bullish Marubozu candlestick pattern. This occurred on Tuesday. A daily close above $1,850 per ounce opens the door to challenge the upside barrier at the fifty day simple moving average at $1,880 per ounce.
On the downside, the first layer of technical support is at the ten (10) day simple moving average at $1,816 per ounce. The next layer of technical support lines up at $1,764 per ounce.
