- Gold is reporting gains in Asia and is flirting with the 50-hour moving average (MA) hurdle.
- The major MAs indicate the gains will likely be short-lived.
Oversold conditions have likely put a bid under gold in Asia, consequently, the yellow metal is flashing green.
At press time, gold is flirting with the 50-hour moving average (MA) hurdle of $1,244, having clocked a 2018 low of $1,236 on Friday.
The hard currency has dropped 9.45 percent in the last three months on increased prospects of faster Fed tightening and breached a long-term ascending trendline support on Friday.
Further, the intraday charts remain biased toward the bears as the 100-hour MA is located below the 200-hour MA. So, corrective rallies could be short-lived.
On the data front, China's Q2 GDP today will be closely watched for evidence of a slowdown due to trade tensions. Also scheduled for release are monthly retail sales, industrial production figures. A weaker-than-expected GDP reading could add to the bullish tone around the safe haven yellow metal.
Gold Technical Levels
Resistance: $1,244 (50-hour MA), $1,248 (100-hour MA), $1,252 (200-hour MA).
Support: $1,239 (support on the hourly chart), $1,236 (Friday's low), $1,234 (50-month MA).
|TREND INDEX||OB/OS INDEX||VOLATILY INDEX|
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.