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Gold holds near 3-week highs

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

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    Gold prices rallied to fresh 3-week highs, with spot reaching $1,262.62 before retreating late in the US session.

    The bright metal benefited from a weaker dollar during the first half of the day, but later pulled back amid an improvement in market's mood, as worldwide indexes closed in the green, drifting investors away from the safe-haven asset. It closed the day little changed around $1,258 an ounce.

    Gold technical view

    “Nevertheless, the commodity holds onto gains weekly basis, and the daily chart shows that spot managed to post a higher high and a higher low well above its 20 SMA, indicating the risk remains towards the upside. Furthermore and in the mentioned time frame, the technical indicators remain within bullish territory, although partially losing their upward strength,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the RSI indicator eased from overbought levels, but stands flat around 67, while the Momentum indicator lacks directional strength within positive territory as the price remains well above a bullish 20 SMA, all of which supports additional gains, particularly on a break above the mentioned daily high.”

    Support levels: 1,251.70 1,242.75 1,233.70. Resistance levels: 1,262.60 1,271.80 1,283.50.
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