Gold extends decline into a sixth day

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 4, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Córdoba) - Spot gold has extended its decline for a sixth consecutive day and it is a couple of bucks away from erasing all of its October gains,, closing the day around $1,107.80.

    The bright metal has been under pressure ever since the Federal Reserve hinted at a possible rate hike in December, and Yellen's comments on the matter this Wednesday, fueled dollar strength.

    Gold technicals continue to point lower

    “With the commodity about to confirm a full 100% retracement, the daily chart shows that the technical indicators continue heading south with a strong downward momentum, despite being in overbought territory, whilst the decline has extended further below the 100 DMA now at 1,130.70, and a major resistance in the case of a sudden recovery”, said Valeria Bednarik, chief analyst at FXStreet. “Shorter term, the 4 hours chart shows that the RSI indicator has resumed its decline in extreme oversold levels, and heads lower around 20, while the Momentum indicator holds near to oversold territory, with no signs of changing bias during the upcoming hours. Further declines below 1,104.60, October low, should lead to a continued decline, despite the extreme conditions, with the market now eyeing the year low around 1,070”.

    Support levels: 1,104.60 1,098.70 1,092.50. Resistance levels: 1,109.20 1,114.30 1,121.60.
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