Forex Marketz Daily Forex News – Fully Markets Update
Looking at the widely traded spot gold futures contract on the above daily MT 4 price action chart, the yellow metal has seen a recovery from the three week low price point of $1,678 per ounce set on Wednesday, last week. This futures contract closed the week near $1,730 per ounce.
The economic calendar, for Monday, is pretty light. The Institute for Supply Management (ISM) will release their monthly services purchasing managers’ index (PMI) for the United States.
A better than expected report could weaken the greenback which would help the spot gold futures contract. The U.S. is also releasing monthly factory orders.
Spot gold traders will also be monitoring the progress of President Joe Biden’s fiscal infrastructure bill. This bill will face tough resistance in both houses of Congress as it calls for tax hikes to help fund the massive spending.
Gold traders are also watching the worrisome coronavirus (Covid-19) infection in the euro area as they start to lose control. That should boost safe haven assets like the U.S. dollar over the bullion.
Daily Spot Gold Technical Analysis (XAU/USD)
Looking at the above XAU/USD daily MT 4 chart, the 14 day relative strength index (RSI) has fallen below thirty as prices near oversold. As the bullion recovered, the 14 day relative strength index moved back towards fifty. This suggests the sellers are losing some steam.
This benchmark contract is also above the short term twenty (20) day simple moving average (SMA). This could also help the gold bulls. With that said, a daily close above $1,745 is needed to open the door for the fifty (50) day simple moving average at $1,770 per ounce.
On The downside, a failure at $1,745 per ounce opens the door to challenge the short term twenty (20) day simple moving average in play at $1,720. The key and psychological level at $1,700 then comes into focus.
