Gold rebounds back to $1240, still heads for weekly loss
- Gold off lows amid a weaker US dollar and despite a negative in tone in Wall Street.
- Bearish pressure eases but the short-term trend still points to the downside.
Gold rebounded sharply and trimmed most of the day’s losses during the US session. The yellow metal bottomed at $1,232.90, the lowest since December 4. From the lows climbed back to the $1,240 area as equity prices in Wall Street extended losses.
From the level it had a week ago, gold is around $10 lower, but the tone has changed significantly. Seven days ago, XAU/USD posted the highest weekly close since June, but it was rejected from above $1,250 and started to correct lower.
Today bottomed near $1,230. The short-term outlook continues to favor a correction while the price remains under $1,245. Still, the main trend is bullish.
XAU/USD Levels to watch
To the downside, support levels are seen at $1,232.40 (20-day moving average), $1,228.90 and $1,218.20. On the upside, resistance could be located at $1,241.70, $1,247.00 and $1,251.20 (weekly high).
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
