Forex Marketz Daily Forex News – Fully Markets Update
Overall, the popular spot gold futures contract for front month delivery looks bearish while below the two hundred (200) day simple moving average. After four weekly losses, the yellow metal is consolidating near the bottom of a bearish week long price action tunnel.
Economic data which impacts the U.S. dollar also has an effect on the spot gold futures contract. On Monday, the world’s largest economy will publish monthly housing data. The Dallas branch of the Federal Reserve Board will release their monthly manufacturing index. The United Kingdom has no economic data scheduled for publication on Monday.
Germany, the euro area’s largest economy, will feature the monthly Ifo business sentiment index. The Ifo economic institute will also publish the European Union’s sentiment survey expectations. The European Union Governing Council will also hold their Economic Finance Meeting.
Also of interest for safe haven assets, like the greenback and the gold bullion, is the rapidly spreading Delta coronavirus (Covid-19) variant.
Daily Spot Gold Technical Analysis (XAU/USD)
Looking at the above daily spot gold futures contract from the MT 4 trade platform, the yellow metal is looking neutral to start the week off. Price action is slightly skewed lower below the 200 day simple moving average.
Also of note, the 14 day relative strength index (RSI) is below the mid-point at fifty. This could indicate that the gold bulls still have room for upside momentum.
On the downside, a daily close below $1,795 per ounce, and 100 day simple moving average, opens the door for Friday’s low price point lining up at $1,790 per ounce. The next downside barrier is at the 61.8 percent Fibonacci level at $1,775 per ounce.
A break above the 200 day simple moving average at $1,820 per ounce opens the door to challenge the 38.2 percent Fibonacci level in play at $1,830. The 50 day simple moving average lines up at $1,835 per ounce.
