Gold Technical Analysis: Looks to stage a modest recovery amid highly oversold conditions
|• After breaking the December lows support, near the $1240-38 region, the precious metal continued with its steep decline and touched a fresh one-year low on Thursday.
• The ongoing USD upsurge wrecked everything across the board and was seen as one of the key factors smashing dollar-denominated commodities, including gold.
• The bearish pressure now seems to have abated around $1212 level, with further support beneath seen at July 2017 low level of $1204.85 ahead of the $1200 handle.
• Meanwhile, highly oversold conditions on hourly/daily/weekly charts warrant some near-term consolidation or a modest short-covering bounce.
Spot rate: $1217.59
Daily High: $1228.54
Daily Low: $1211.46
Trend: prospects for a minor bounce
Resistance
R1: $1222 (horizontal zone)
R2: $1225 (50-period SMA H1)
R3: $1229 (overnight swing high)
Support
S1: $1211 (one-year low set earlier today)
S2: $1205 (July 2017 swing low)
S3: $1200 (round figure mark)
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.