Forex Marketz Daily Forex News – Fully Markets Update
Looking at the widely traded spot gold futures contract and above hourly MT 4 price action chart, gold is trading around $1,944 per ounce and below the short term five (5) hour simple moving average.
Spot gold is now below $1,952 per ounce as traders are watching U.S. elections in Georgia. This will determine which political party controls the upper house of the Congress. Also, on Wednesday, Washington DC is bracing for mass protests as President-elect Joe Biden’s Electoral College will be certified by Congress.
The United States is on the road to Friday’s key non-farm payroll report released by the Labor Department. The private monthly ADP non-farm payroll report will be released during the North American trade hours.
The United States will also release monthly factor orders and their final monthly services purchasing managers’ index (PMI) data. Spain and the Eurozone will also publish their final monthly services purchasing managers’ index as well and The United Kingdom will release their final monthly services purchasing managers’ index.
Daily Spot Gold Technical Analysis
Looking at the above spot gold futures (XAU/USD) chart, there is bearish divergence with the relative strength index (RSI). This signals that the yellow metal is overbought as the RSI moves down from seventy to the mid-point at fifty (50).
Price action is looking to challenge the short-term five (5) simple moving average (hourly). This layer of technical support lines up at $1,927. The next layer of technical support lines up at Monday’s low price point at $1,898 per ounce.
However, on the upside, this gold contract notes the first layer of technical resistance comes into play at $1,956. 90 per ounce. A daily close above this upside barrier opens the door to challenge the next upside barrier in play at $1,964.30 per ounce.
Above this level, the next layer of resistance lines up at $1,975.60 per ounce.
