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Gold bounces after 4-day losing streak
FXStreet (Córdoba) - Gold prices posted quite limited intraday gains, with spot hovering around $ 1,122.70 a troy ounce by US close, as surging risk appetite sent investors away from the safe-haven asset.
The downside, however, was limited as commodities traded generally higher, following mining-related shares. Additionally, investors prefer to remain away from the metal, as the US FED meeting looms, with the Central Bank suspected to make its first rate hike which will be the first since 2006.
Gold technical perspective
“Daily basis, the downward potential remains strong, as the price is back below its moving averages, whilst the technical indicators remain well below their mid-lines, with limited downward momentum”, said Valeria Bednarik, chief analyst at FXStreet. “Shorter term, the 4 hours chart presents a neutral stance, as the price hovers around its 20 SMA whilst the technical indicators lack directional strength around their mid-lines. The main support continues to be the 1,109.20 region, and it will take a break below it to confirm additional declines, back towards the July low at 1,071.00”.
Support levels: 1,116.70 1,109.20 1,100.00. Resistance levels: 1,126.30 1,130.62 1,137,40.
The downside, however, was limited as commodities traded generally higher, following mining-related shares. Additionally, investors prefer to remain away from the metal, as the US FED meeting looms, with the Central Bank suspected to make its first rate hike which will be the first since 2006.
Gold technical perspective
“Daily basis, the downward potential remains strong, as the price is back below its moving averages, whilst the technical indicators remain well below their mid-lines, with limited downward momentum”, said Valeria Bednarik, chief analyst at FXStreet. “Shorter term, the 4 hours chart presents a neutral stance, as the price hovers around its 20 SMA whilst the technical indicators lack directional strength around their mid-lines. The main support continues to be the 1,109.20 region, and it will take a break below it to confirm additional declines, back towards the July low at 1,071.00”.
Support levels: 1,116.70 1,109.20 1,100.00. Resistance levels: 1,126.30 1,130.62 1,137,40.
Author
Ani Salama
FXStreet
Ani Salama is an Economist specialized in financial markets and statistics analysis. In 2010, she joined FXstreet where she now contributes with the news section.
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