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Focus on Senate Funding Vote

Market Analysis

XAUUSD, H1

Gold is fractionally higher than Friday’s close, currently trading at $1,334.00, after dipped early today, down to the 200-period EMA in the hourly chart, at $1328.42. There has been little impact from the U.S. government shutdown, though dollar weakness should limit downside potential going forward. Intra-day, the gold is indeed looking to have further upside momentum, since it is traded in the upper Bollinger Bands pattern, above the 200-period EMA, with the short-term 5-period EMA holding above 9-period MA. This suggests a retest of Friday’s highs.

However the US Senate voting that has been planned for today at 12 ET to end the shutdown, is  seen weighing on XAUUSD today. Therefore, we might seen a consolidation mode on gold, on the anticipation of  Senate funding vote, at noon in DC. Senate Majority Leader McConnell said there would be a vote to extend the funding through February 8. But, it’s still not clear there will be the 60 votes to end the impasse. However, McConnell’s indication that he would allow a vote on immigration after February 8, were there a bill, was enough to move Senators Graham and Flake to say they would vote for the measure. Last week they were two of nine Republicans who opposed the legislation. Over the weekend, the White House indicated it would not negotiate over immigration while the government was closed. House Majority Leader McCarthy earlier said the House would take up any bill the Senate passed

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Andria Pichidi

Market Analyst

HotForex

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