Forex Marketz Daily Forex News – Fully Markets Update
Last week, the widely traded spot gold futures contract managed to keep its bullish momentum, which started last Tuesday, going into the weekly closing. Still, gold closed below its highest yearly price point which is at $1,912 per ounce.
Supported by end of month inflows on Friday, the spot gold contract saw its fourth weekly gain and closed just above $1,900 per ounce.
The economic calendar, for Monday, will feature the private Caixin non-manufacturing purchasing managers’ index (PMI) out of China. The European Union is releasing their monthly harmonized consumer price index (CPI). The euro area’s largest economy, Germany, will also publish their monthly harmonized consumer price index (CPI).
The financial markets in the United States are closed for the Memorial Day holiday. This will cause lighter than normal trade volume during the North American trade hours. The United Kingdom has no economic data releases on the docket.
Daily Spot Gold Technical Analysis (XAU/USD)
Looking at price action on the above spot gold MT 4 daily chart, the 14 day relative strength index is just above seventy (70). This is technically an overbought signal. With that said, the downside support level at $1,900 per ounce continues to hold.
As long as price action remains above the key support level at $1,900, more short term gains could occur. Gold prices also remain above a rising trend lines in play since 31 March. There is immediate technical resistance in play at the 26 May high price point lining up at $1,912 per ounce.
The next key upside barrier, and static level, lines up at $1,930 per ounce. The 5 January high price point at $1,953 then comes into play.
On the downside, the psychological level of $1,900 is immediate technical support. The next downside barrier lines up at $1,870 per ounce. This is that rising trend line support level. The 200 hundred day simple moving average is in play at $1,845 per ounce.
