Forex Marketz Daily Forex News – Fully Markets Update
Looking at the widely traded spot gold futures contract on the above one hour MT 4 price action chart, gold prices have spike higher. This futures contract is consolidating gains above $1,750 per ounce and just below $1,755 per ounce during the Asian trade session on Thursday.
Financial market participants are still combing over yesterday’s monetary policy and rate decision from the U.S. Federal Open Market Committee (FOMC). The Federal Open Market Committee’s Fed Funds Rate (FFR) was more dovish than anyone had anticipated.
When take with the usual dovish language in the Federal Reserve Board’s monetary policy statement, sentiment was boosted which helped spot gold prices. During his press conference, Federal Reserve Chair Jerome Powell was also more dovish with his language.
Gold traders are monitoring a number of geo-political events from the AstraZeneca coronavirus vaccine to U.S. and Chinese political tensions. The United States and China held a virtual meeting which was shrugged off by Chinese officials.
They showed little or no enthusiasm during their first call with U.S. President Joe Biden. Biden’s administration has already signaled that they will remain firm with China. However, China did say during the call they would be interested in reversing some Trump administration measures.
Spot gold traders will be watching today’s Bank of England (BOE) monetary policy and rate decision. The Old Lady will also release a monetary policy summary and hold a press conference. Traders are also watching U.S. and North Korea tensions and Japans decision to increase of taxes on U.S. beef imports. Iran’s nuclear program is also of interest.
Daily Spot Gold Technical Analysis
Looking at price action on the above hourly MT 4 price chart, a daily close above $1,748 per ounce opens the door to challenge the November 2020 low price point at $1,765 per ounce. The next upside barrier lines up at $1,784.30 per ounce.
Immediate technical support, on the downside, is in play at $1,730 per ounce with $1,712.72 per ounce being the next downside barrier.
