Gold prices advanced at the beginning of the day, with spot reaching $1,248.48 an ounce before turning into the red in the American session, as better-than-expected US manufacturing data revived hopes of a sooner rate hike from the Fed. Spot price dipped 0.5% to $1,227.09/oz, before recovering to the current $1,231.00 region, with buying interest still surging on dips. Gold technical outlook “Technically, the daily chart shows that the price remains well above a bullish 20 SMA, but also that the technical indicators have turned south, with the RSI around 62 and the Momentum around its mid-line, this latter currently neutral,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the technical outlook is neutral-to-bullish, as the price is hovering around a horizontal 20 SMA, while the technical indicators have turned slightly higher after testing their mid-lines, but lack enough momentum to confirm a stronger advance.” “As commented on previous updates, the overall stance is bullish, as long as the market places limited hopes on a US rate hike. Should American data continue to surprise towards the upside, the commodity may reverse course, but that's something that will take more than one strong macroeconomic reading.”, she added. Support levels: 1,226.10 1,216.50 1,202.05. Resistance levels: 1,242.30 1,251.90 1,260.00. For more information, read our latest forex news.