Forex Marketz Daily Forex News – Fully Markets Update
Looking at the widely traded and popular spot gold futures contract (XAU/USD), this popular gold contract is currently trading around $1,890 per ounce during the early trade session on Monday. We are in the final trading week of the year.
The spot gold contract did get a boost after the U.S. President, Donald Trump signed the emergency coronavirus (Covid-19) aid package into law overnight. The outgoing president, who will leave office on 20 January after losing the election to Democratic President-elect Joe Biden, refused to sign the bill into law after the White House originally agreed to support the package.
President Trump wanted less pork and $2,000 relief payments to American households instead of the $600 planned payment. He tweeted “good news” overnight that Congress was finally ready, according to the Washington Post “make one last attempt to avert a shutdown on Monday.”
His delay to sign almost shut the federal government down and cost millions of unemployed a week of paid benefits.
There is nothing on the economic calendar to influence price action with the spot contract. This means traders will be looking elsewhere. The chief executive officer of AstraZeneca says that their vaccine is effective against the new strain of the coronavirus.
Traders are also studying the details of the newly agreed to trade agreement between the European Union and the United Kingdom that averts a chaotic Brexit on 31 December. This deal has improved market sentiment.
Daily Spot Gold Technical Analysis
Looking at the above daily price action chart, this key futures contract is trading just above a short-term rising trend line in play since 30 November. This downside barrier lines up a $1,879 per ounce. The next layer of technical support lines up at $1,850.50 per ounce.
On the upside the first layer of technical support is in play at the round $1,900 per ounce level. A daily close above this upside barrier opens the door to challenge $1,928.50 per ounce.
