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Gold falls for third day in a row

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 12, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Córdoba) - Gold prices fell for a third day in a row, accelerating its decline as markets' mood improved, but a late decline in Wall Street is helping the metal to recover ground.

    The metal settled 1.0% down at $1,085.20 an ounce, having hit a low of $1,083/oz.

    Gold technical view


    “Trading right above the $1,090.00 level, the daily chart shows that the technical indicators continue heading lower above their mid-lines, whilst the 20 SMA heads higher around the 61.8% retracement of its latest bullish run at 1,078.90, all of which favors additional declines, particularly if the price remains below the 38.2% retracement of the same rally, around 1,092.00”, said Valeria Bednarik, chief analyst at FXStreet. “In the shorter term, the 4 hours chart presents a bearish tone, given that the 20 SMA has turned south far above the current price, and in fact converging with the 23.6% retracement of the same rally at 1,100, while the Momentum indicator heads lower within bearish territory and the RSI indicator hovers around 44. Nevertheless, and considering the latest bounce, it will take a clear break below the mentioned daily low to confirm a bearish continuation for this Wednesday”.

    Support levels: 1,083.40 1,078.90 1,070.20. Resistance levels: 1,092.00 1,097.65 1,113.05.
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