Forex Marketz Daily Forex News – Fully Markets Update
Looking at the popular spot gold futures contract (XAU/USD) on the above daily MT 4 price chart, the spot contract has fallen towards $1,778 per ounce.
Right now the spot contract is trading quietly around $1,785.50 per ounce.
Overnight Federal Reserve Board Chair Jerome Powell testified on Congressional Hill. He was rather downbeat about the world’s largest economy. U.S. Treasury Secretary Steve Mnuchin also testified and backed up his counterpart at the U.S. central bank.
There comments come despite the hope for a coronavirus (Covid-19) vaccine being rolled out. The fact is, it will take at least six months to a year to vaccinate enough people to be effective.
Federal Reserve Chair Powell, speaking before the Senate Banking Committee, along with Mnuchin, both reiterated that the economy is on the path to recovery but more is needed to keep this uneven recovery on track.
Mr. Powell spoke about moderate economic growth which could be derailed thanks to an alarming resurgence with new coronavirus cases. Mr. Mnuchin urged Congress to use the $455 billion from the CARES Act to come up with a much needed second round of fiscal stimulus to support the American economy.
Daily Spot Gold Technical Analysis
With all that said, looking at the spot gold futures chart, above, both the 14 day MACD histogram and relative strength index (RSI) are normal. The spot gold contract is preparing to consolidate a bit before making its next big move.
After oversold RSI conditions forced the spot contract to retreat from the May high price point gold is trying to find a bottom around $1,785.50 per ounce. A daily close below this level opens the door to challenge the next downside barrier in play at $1,770.10 per ounce with $1,752.50 per ounce then popping up on the radar.
On the upside, a daily close above the key psychological level at $1,800 per ounce opens the door for 7 July high price point at $1,818 per ounce. The next upside barrier lines up at $1,831.48 per ounce.
