Safe haven bids push Gold higher to 50-DMA
|North Korea news increased the safe haven demand for gold [XAU/USD], pushing prices higher to 50-DMA level of $1298 levels.
Gold could rise above $1300 if risk aversion worsens
Currently, FTSE 100 futures and Germany's DAX futures point to a negative open. Meanwhile, S&P 500 futures are down 0.30%. The yellow metal could rise above $1300 levels if the risk aversion worsens in Europe.
Oversold Stochastic [5,3,3]
The oversold daily Stochastic oscillator remains in favor of a technical correction. However, the 14-day RSI holds below 50.00 and well above the oversold territory. Thus, upticks could be met with fresh offers.
Gold Technical Levels
At the time of writing, the metal traded at $1296 levels. A break above $1298 [50-DMA] would expose $1302 [5-DMA]. A violation there could yield a rally to $1315 [10-DMA]. On the downside, breach of support at $1291 [session low] would open up downside towards $1288 [previous day's low] and $1280.59 [Aug 21 low].
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