Forex Marketz Daily Forex News – Fully Markets Update
Spot gold futures were choppy during Thursday’s trade session. This benchmark gold futures contract remains overall bearish headed into the end of the week. This comes as key upside barrier remain intact leaving the door open for sellers to take some profits off the table.
Spot gold traders will be paying very close attention to U.S. Federal Reserve Board’s preferred indicator for inflation. This is the monthly PCE price inflator. Also on the U.S. economic calendar, the University of Michigan will release their final monthly consumer sentiment index.
Across The Pond, the United Kingdom will publish the private monthly Gfk consumer confidence gauge. The private monthly CBI realized sales index will also be published. The European Union is publishing monthly private loans data.
Yesterday, the greenback found some support at the expense of spot gold. The U.S. Bureau of Economic Analysis (BEA) released their final first quarter gross domestic product (GDP) number. This number was steady at 6.4 percent.
Monthly durable goods orders gained 2.3 percent to $253.5 billion in May. This was below expectations. Weekly initial jobless claims fell to 411,000 for the week ending 18 June.
Daily Spot Gold Technical Analysis (XAU/USD)
Looking at price action on the above daily spot gold futures (XAU/USD) MT 4 chart, the 14 day relative strength index (RSI) is just above thirty, but below the mid-point. This is a signal that sellers are probably more interested in gold than buyer for now.
With that said, if the precious metal breaks below the 61.8 percent Fibonacci level, lining up at $1,770 per ounce, the door opens to challenge the 29 April low price point and static level in play at $1,755 per ounce. The next layer of technical support lines up at $1,745 per ounce.
On the upside, the key psychological level, as well as the one hundred (100) day simple moving average lines up a $1,800 per ounce. The next upside barrier lines up at the 38.2 percent Fibonacci level at $1,835 per ounce. This is also the 200 day simple moving average.
