Gold trims daily losses but fails to rise back above $1190
- Gold ends lower but off lows, with bias still pointing to the downside.
- Below $1,180/oz the bearish pressure is likely to rise sharply.
Gold moved off daily lows but it was still in negative territory, on the back of a stronger US dollar. The yellow metal bottomed at $1,184/oz and then bounced to $1,191. Near the end of the session, it was hovering around $1,189.
The move to the upside took place amid risk appetite with a rally in Wall Street. When equity prices moved off higher, gold lost momentum but then retreat modestly from session highs.
The upside in gold continues to be seen as limited amid a resilient US dollar that continues to receive support from monetary policy expectations. After last week rate hike, the Fed is expected to continue with another hike in December and probably three more next year.
XAU/USD Technical outlook
“The daily chart shows that spot remained below all of its moving averages, with the 20 DMA still directionless, but anyway capping advances. Technical indicators in the mentioned chart spent the day consolidating in bearish territory, with the RSI slowly turning south, keeping the risk leaned to the downside”, said Valeria Bednarik, Chief Analyst at FXStreet.
According to her, in the short-term and according to the 4 hours chart, the metal was unable to settle above a still bearish 20 SMA, while technical indicators aim modestly higher within negative levels, lacking enough strength to confirm an upward extension ahead.
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.
