Forex Marketz Daily Forex News – Fully Markets Update
Looking at the above daily MT 4 price chart for the popular spot gold futures contract (XAU/USD), price action failed to close above the short term fifty (50) day simple moving average. This was also a multi-week high price point.
On Thursday, the spot gold contract lost 1.6 percent to set a weekly low price point at $1,825 per ounce.
Headed into the last full trade week of 2020, the economic calendar starts out slow. Gold traders will watch for any development surrounding Brexit as the week begins. Both the United Kingdom and the European Union are working through the weekend to close significant gaps towards an agreement. These are the contentious subjects of fisheries, governance and a fair and level playing field.
The Prime Minister of the United Kingdom has said that the UK must be ready for the eventuality of a no-deal Brexit. The UK is also preparing its Navy to protect its fishing lanes by 31 December. That is the data, that no matter what, the United Kingdom finally leaves the European Union.
Daily Spot Gold Technical Analysis (XAU/USD)
Looking at the daily MT 4 price chart, the relative strength index (RSI) is near the mid-line at fifty (50) suggesting that the spot gold contract is rather indecisive at this point. This is the last full trade week of the year so traders might be hesitant to make big moves.
With that said, while above the two hundred day simple moving average (SMA) at $1,810 per ounce, the bulls are still in the game. The first layer of technical resistance lines up at $1,850 with the next upside barrier lining up at $1,875 per ounce. The key upside barrier at $1,900 then comes into play. This is where the shorter term fifty day simple moving average lines up.
On the downside, the two hundred day SMA lines up at $1,810 per ounce. The next layer of technical support, is a key psychological level at $1,800 per ounce. The 11 November low price point at $1,775 then comes into play.
