Forex Marketz Daily Forex News – Fully Markets Update
Last week, the widely traded spot gold futures contract started the week looking for gains. Buyers came into the gold market and sent price action above the key two hundred (200) day simple moving average (SMA). This downside barrier lines up at $1,840 per ounce.
The spot gold contract then climbed to its highest price level since early January at $1,890 per ounce, reached on Wednesday. Gold then lost some momentum and fell towards $1,870 per ounce before recouping some gains on Thursday. This gold contract close the week around $1,880 per ounce posting its third week in a row of gains.
Monday’s economic calendar is pretty uneventful as far as spot gold traders are concerned. The U.S. Chicago Federal Reserve will release their monthly national activity index. The United Kingdom and the European Union have no economic data scheduled for release.
On the Asian economic docket, Bank of Japan’s Governor will give remarks regarding monetary policy and the future of ultra-accommodative policy, rates and asset purchases.
Daily Spot Gold Technical Analysis (XAU/USD)
Looking at the above daily spot gold MT price chart (XAU/USD), the 14 day relative strength index (RSI) us still above seventy (70). The RSI has been above this point for three days in a row which is a signal of possible overbought conditions. This could lead to a downside correction before this market coils higher.
Immediate technical support lines up at the 61.8 percent Fibonacci level in play at $1,850 per ounce. The next layer of technical support lines up at the 200 day simple moving average at $1,840 per ounce. The next layer of technical support lines up at the twenty day simple moving average at $1,820.
On the upside immediate technical resistance lines up at the 19 May high price at $1,890 per ounce. The key psychological level upside barrier at $1,900 then comes into play with $1,930 being the next upside barrier to monitor.
