Forex Marketz Daily Forex News – Fully Markets Update
Looking at the spot gold futures contract and above daily MT 4 price action chart, the popular gold futures contract is now trading below the fifty and one hundred (50, 100) day simple moving averages (SMA).
The spot gold appears to be opening a new trade week on the back foot as price action still indicates a bearish trend. With that said, the spot gold contract remains well above the two hundred (200) day simple moving average.
There is not a lot on the economic calendar to influence price action with the spot gold futures contract. Monday sees no economic data being released by the United Kingdom or Canada. The Eurozone’s calendar is also quiet. Germany’s central bank, the Bundesbank, will release their monthly report. In the United States, traders will monitor the monthly Empire state manufacturing index.
As mentioned in our fundamental report, price action with the spot gold contract is likely to be more influenced by the lack of any new fiscal stimulus out of the United States as well as spiking global coronavirus pandemic (Covid-19) infections.
U.S. politics is also weighing on financial market sentiment and could cap losses being seen with gold. President Donald Trump continues to be in denial that he lost. He has refused to concede or accept the result of the election. His White House is also refusing to cooperate with the Biden transition team.
Daily Spot Gold Technical Analysis
Looking at price action, near term support, for spot gold, lines up at $1,860 per ounce. A daily close below this first layer of technical support opens the door to challenge the next downside barrier in play at $1,850 per ounce.
The next layer of technical support lines up at $1,820 per ounce with $1,790 per ounce then coming into focus.
On the upside, the first layer of technical resistance lines up where the 50 and 100 day SMAs converge. This level is at $1,905 per ounce. The next upside barrier lines up at the two week high price point at $1,935 per ounce.
The next layer of technical resistance lines up at November high price point at $1,965 per ounce with $1,995 and $2,020 per ounce then popping onto the radar.
