Forex Marketz Daily Forex News – Fully Markets Update
Last Tuesday was a decisive day for the widely traded spot gold futures contract. Price action broke above $1,800 per ounce. This was a key psychological price level as well as the two hundred (200) day simple moving average (SMA).
While above this key level, things look good for gold buyers as this contract continues to inch its way higher.
The economic calendar on Monday is relatively quiet. With that said spot gold traders will be looking at several key headlines. The fist headline concerns Brexit. The European Union and the United Kingdom are working on bridging wide gaps to come to a new free trade agreement. There are three key issues keeping both side apart. These are fisheries, governance and a level playing field.
The United States and China continue to wage a trade battle. The U.S. Pentagon has added CNOOC and several other Chinese tech firms to their banned lists and the outgoing Trump administration is preparing other punitive restrictions to force China into a more level trade playing field.
The United States Congress is also trying to reach a consensus to pass another coronavirus pandemic fiscal stimulus bill. There are also headlines surrounding potential coronavirus pandemic vaccines shaking up price volatility as the U.S. dollar (USD) remains broadly weak propping up the price of the spot gold futures contract.
Daily Spot Gold Technical Analysis
Looking at the above daily MT 4 price chart, this contract is now challenging the former layer of technical support at $1,850 per ounce. A daily close above this level should open the door to challenge the fifty (50) day simple moving average lining up at $1,880 per ounce.
The next upside barrier comes into play at the key and all important price level at $1,900 per ounce.
On the flip side, if the price of gold moves lower, the first key layer of technical support lines up at $1,800 per ounce. Any close below this level is bearish and could bring the start of the June to August uptrend back into focus. This layer of technical support is at $1,725 per ounce.
