Gold ends the day down but off session lows

Ani Salama FXStreet

Gold prices managed to trim most of its intraday losses but closed the day down, as fears of a Brexit eased, weighing on the yellow metal.

Gold closes the day around $1,289 an ounce, down 0.69% on the day, but having recovered from lows at the $1,278 zone.

Investors, however, are being reluctant to unwind their long positions in gold, as uncertainty over the outcome of the referendum prevails, with the "leave" and the "remain" now neck to neck.

Gold technical view

“The daily chart shows that the technical indicators have retreated from overbought territory, and keep heading lower, but still well above their mid-lines, whilst the 20 SMA maintains a strong upward slope around 1,256.80,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the price is below a horizontal 20 SMA, offering an immediate resistance at 1,290.70, while the RSI indicator is flat around 52 and the momentum indicator heads north within neutral territory, suggesting the commodity may extend its recovery on a break above the mentioned dynamic resistance.”

Support levels: 1,284.90 1,276.50 1,265.80. Resistance levels: 1,290.70 1,303.65 1,315.54.

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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