Gold resumes advance

Ani Salama FXStreet

Gold resumed the rise on Wednesday underpinned by dollar weakness and lingering uncertainty surrounding the Brexit. The yellow metal closed the day around $1,325.00 an ounce, around 1% higher on the day.

Further supporting the metal were comments from Fed's Powell, who stated that global headwinds increased, but is too early to assess the impact of the UK referendum in the US economy. However, speculative interest is considering the US Central Bank won't be able to raise rates in this scenario, until late 2017.

Gold technical perspective

“Technically, the pair recovered after an approach to the 1,303 region, and trades now above the 23.6% retracement of its latest decline, whilst the technical indicators in the daily chart have lost their downward strength and are turning modestly higher above their mid-lines, supporting some further recoveries for today,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the price has settled above a horizontal 20 SMA, which converges with the mentioned Fibonacci retracement at 1,320.30, whilst the technical indicators stand path around their mid-lines.”

Support levels: 1,320.30 1,310.40 1,303.65 Resistance levels: 1,335,60 1,342.60 1355.10.

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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