Forex Marketz Daily Forex News – Fully Markets Update
Looking at the widely traded spot gold futures contract, price action remains quite neutral between the two hundred and twenty (200, 20) day simple moving averages (SMA).
Today’s economic calendar is pretty quiet today. The euro area will publish monthly factory gate prices, also known as the purchasing price index (PPI). Spain will release their monthly unemployment change. The world’s largest economy, the United States, will publish their monthly factory orders. Canada is releasing their final monthly manufacturing purchasing managers’ index (PMI).
The United Kingdom has no economic data scheduled for release ahead of this week’s Bank of England’s (BOE) monetary policy and rate decision schedule for later in the week. Spot gold traders are watching the highly contagious Delta coronavirus (Covid-19) variant spreading around the world.
This variant is already making the global financial markets jittery as the economic recovery is slowing in China and the United States. The spot gold futures contract is also looking to capitalize on a U.S. Federal Reserve which is in no hurry to change their ultra-loose monetary policy or taper their monthly asset purchases. This has weakened the U.S. dollar which should support the yellow bullion.
Daily Spot Gold Technical Analysis
Looking at the above daily MT 4 price action chart, the 14 day relative strength index (RSI) is at the mid-line around fifty. Also, the 14 day momentum indicator is also flat. This could signal more sideways price drifting.
On the upside, the first layer of technical resistance lines up at the 200 day simple moving average. This barrier is at $1,820 per ounce. The next layer of technical resistance comes into play at the 50 day simple moving average lining up at $1,830 per ounce. The next upside barrier lines up at $1,845 per ounce.
On the downside, the 20 day simple moving average lines up at $1,810 with the 100 day simple moving average coming into focus at $1,800 per ounce. This is a psychological level and the fifty percent Fibonacci level, as well. The 23 July low price point lines up at $1,790.
