Forex Marketz Daily Forex News – Fully Markets Update
Last week, the widely traded spot gold futures contract, saw some wild price swings. However, key support and upside barrier from last week remain in play this week.
The spot contract will remain influenced by Treasury yields as well as the strength of the U.S. dollar. A stronger greenback makes gold more expensive to buy, store and insure for those using other currencies.
Spot gold traders will be reacting on Monday, to coronavirus news. Especially vaccination headlines. Over the weekend, the United Kingdom, due to supply issues has to slow their vaccination program down. They do not have the supply to meet the demand.
Also of interest to gold price action was the recent tense exchange between China and the United States. The world’s two largest economies are worlds apart on Hong Kong, trade Iran and more. More concerning, The U.S. diplomatic did not seem confident nor were they well prepared for the meeting.
On Monday, Federal Reserve Board Chair Jerome Powell is speaking. There are several other Federal Reserve monetary policy makers also speaking.
Daily Spot Gold Technical Analysis (XAU/USD)
Looking at the above daily MT 4 price chart, the 14 day relative strength index (RSI) is moving sideways and just below the midline at fifty (50). This could mean some indecisive price action for the spot gold futures contract.
On the upside, initial technical resistance lines up at $1,745 per ounce. The next upside barrier lines up at $1,768 per ounce with the fifty (50) day simple moving average at $1,790 per ounce then coming into focus.
On the downside, the benchmark XAU/USD gold contract sees initial technical support lining up at the twenty day simple moving average. This downside barrier lines up at $1,735 per ounce.
The next downside barrier comes into play at the Fibonacci 23.6 percent retracement level. This layer of technical support is around $1,720 per ounce with the key psychological level of $1,700 per ounce then coming into reach.
