Gold losing the grip, meets resistance near $1,230
|- The precious metal is struggling to extend yesterday’s up move.
- Recent advance met resistance in the 100-day SMA near $1,230.
- Gold trades in 3-month peaks after breaking the rangebound theme.
The once troy of the yellow metal is now looking for direction in the upper end of the recent range near $1,230.
Gold looks to USD, sentiment
Prices of the precious metal gained more than $30 on Thursday following the continuation of the sharp sell off in the risk-associated complex and the retreat in yields of the US 10-year note. The metal managed to break above the multi-week sideline theme prevailing since mid-August.
In addition, the increased volatility in past sessions saw the VIX index (aka ‘the panic index’) climbing to levels last seen in May above the 20.00, which also sustained the strong up move in the yellow metal.
However, today’s recovery in the buck plus easing concerns over the US-China trade war in response to the recently announced meeting between Xi and Trump has somewhat limited the upside in prices for the time being.
Gold key levels
As of writing Gold is losing 0.40% at $1,219.37 and a breakdown of $1,200.73 (10-day SMA) would aim for $1,199.10 (21-day SMA) and then $1,180.74 (monthly low Sep.28). On the upside, the next hurdle lines up at $1,226.87 (high Oct.11) seconded by $1,228.92 (100-day SMA) and finally $1,277.74 (200-day SMA).
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