Gold rebounds after yesterday’s slide, holds above $1,200
|- Gold moved all day in a small range with a bullish bias.
- Managed to hold above $1200 and rose modestly.
Gold rose modestly on Wednesday, recovering after losing more than $10 on Tuesday. The yellow metal remained above $1,200/oz during all day and peaked during the US session at $1,206.50. To rebound took place amid an improvement in market sentiment coupled with a retreat of the dollar during the US session and a retreat in US yields.
The positive tone around gold eased on Tuesday after it hit a weekly high at $1,213. The decline in the US dollar has been the main driver of the recovery from $1,160. The US Dollar Index was about to post the lowest close since August 2 and if it continues to head lower it could boost gold.
Technical outlook
According to Valeria Bednarik, Chief Analyst at FXStreet, technical readings in the daily chart offer a positive stance, with XAU/USD holding above a flat 20-day moving average, while the Momentum indicator advances above its 100 level and the RSI hovers around neutral levels.
“In the shorter term, and according to the 4 hours chart, however, the upward potential seems limited as the price is stuck around its 20 SMA and between bearish 100 and 200 SMA, as technical indicators try to advance in neutral territory”, added Vednarik.
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